"Mar" stands for March, so this option will expire on the third Friday of March 2006, which is next week. Traders buy Calls when they think the price of the asset is going to go up. For Call options, if the price of the underlying asset is below the strike price of the option then it is "out of the money," when the price of the asset crosses above the strike price it is called, "in the money." This too works the opposite way for Put options. A single payment option trade works this way: the trader or broker in the Forex option trading inputs a particular scenario then gets a premium quote (option cost), and receives a payout if this particular scenario actually takes place. There is a lot of information available on the web regarding options and the development of online brokerages.
"Mar" stands for March, so this option will expire on the third Friday of March 2006, which is next week. Let's be clear here, the buyer of this option is not obligated to buy or sell anything, an option is just that; it gives you the right. As the purchaser of the option, you will have the right to buy 1000 shares of MER at $60.
Stock options trading requires you to understand the market, having an edge and executing a plan. Again, there is no intrinsic value for an ATM option, just the time value. The value of Put options work the opposite way, they increase as the underlying asset decreases. Options trading forums allows you to discuss options trading with fellow like minded investors.
The buying and selling of shares with in the same day. At the time this options position was purchased, the underlying asset was about $191.10, well below the strike price. The standardized items in any futures contract are: the quantity of the underlying product; quality of the underlying product (not required in financial futures); the date and month of delivery; the units of price quotation (not the price itself) and minimum change in price (tick-size); and the location of settlement.
The exercise (strike) price, expiration date and option type represent these rules. This helps investors to leverage their investment power while increasing their potential reward from a stock's price fluctuations. So in a way, you are directly betting against that person if you buy an option. As a stock market trader, you must have experienced the booms and bumps of the market and the flows in which day trading rotates.
"strike price", refers to the price at which the option buyer can exercise his/her right to buy or sell the underlying security of the option contract. You can monitor and observe trends right from the comfort of your own home. These underlying assets can either be stocks, ETFs or Indexes.
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