Watch the Secondary Market Stock Options video on Youtube
Hi Prof. Nugent, im interested in knowing how accessible options are to general public. 1. So I remember you said in class you have to be licensed in a certain way to write options, but can anyone trade options? 2. And you said options are traded by financial institutions all the time, but to what extend in terms of percent of capital do they invest in options since it's a much more risky investment? Do they use option more as a way to generate profit or to hedge their positions? Thank you! – Yilan Qu
Hi Professor Nugent, Are options heavily traded by hedge funds? And what do you feel about job offers that give options in the contract for employment? – Abhishek Parekh
Would it be possible to hedge your position in the same stock with both a call and a put? So if you expect the stock to go up you have a call for it but, assuming that its a volatile one, if it drops then you can apply a put on it and minimize your loss?
Many thanks, Denny
hi professor nugent, is a listed stock option's volatility dependent on the volatility of the stock? It seems like a simple answer, but I feel that options can get quite complicated when you're dealing with cyclical stocks and investing in momentum stocks and opt to buy options contracts.
can you determine the volatility of an options contract for a stock by simply looking at the stock's beta? or are there more complex methods in this determination. thanks, arthur
Since 90% of option contracts are stock options, what are other kinds of options? For example, can you write an option for real estate or would that be unreasonable? Also, is there a way to expedite a stock option to end it earlier than its expiration if the buyer wants to cut losses on a call.
Can we make our own stock an options contracts? or it could only be released by the stock's firm its own? Who is used to be the winner in the options contracts?
– Yida Yang
I was wondering where are the best websites or "places" to write an option?If so are you charged a certain fee for writing the option? How much is the fee usually if there is one?
Thank you,John Hauschild Bus 355
1) How often do institutional investors use options contracts?2) Would you ever recommend writing a naked call option, or is it too much unnecessary risk?
– Bobby Hitzig
Hi Professor Nugent,
What are the minimum requirements to becoming an option writer? Are there a certain amount of years you have to be trading?
– Alp Akdeniz
Is it more common for Option writers to write covered calls rather than naked calls due to covered calls preventing huge losses?