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You could either buy a higher call and create a credit spread to hedge the short call option

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Buy some of the stock and use it like a covered call strategy.

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7y ago

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What do you call it when the place where position equals zero?

The origin.


What is 235.709 to the nearest hundredths?

What we have with the number 235.709, and rounding to the nearest hundredths is knowing your decimal positions. If we had a number "1.abcde..." we would call the number 1 = whole number (scientific notation 1.01) we would call the position "a" = tenths (scientific notation 10-1) we would call the position "b" = hundredths (scientific notation 10-2) we would call the position "c" = thousandths (scientific notation 10-3) we would call the position "d" = ten thousandths (scientific notation 10-4) we would call the position "e" = hundred thousandths (scientific notation 10-5) and this numbering system would continue. In actuality, people might talk about "thousandths," but rarely list anything beyond that (because it begins to become a mouthful! and awkward to say). So then Scientific Notation is used. Do you see how much easier it is to say 10-5 versus "a hundred thousandths"?) The exponent being a negative number informs us how many zero's we need to place to the right of the decimal point. So, 10-5 = 0.000 001 After reviewing what is being asked, we can get back to your original question: "round to the nearest hundredths." You see that 235.709 has values to the "thousandths" position. Therefore, we need to drop a position to get to the "hundredths" position. With .709, you can see that the "9" is higher than 5, so you would carry 1 to the next position (the zero would become one), and you now .71 which is to the "hundredth" position. Your answer would then be 235.71 Now, what would be your number if it was rounded to the nearest tenth?


What is the adverb of short?

Shortly is the adverb form of short.Some example sentences for you are:The executive will see you shortly.I will call him shortly.Shortly, I will be going to work.


What do you call the combination of horizontal and vertical axis?

The combination of a horizontal axis and a vertical axis is called a Cartesian coordinate system, or in short, a graph.


What is the physical name for fourth order derivatives?

We call "jerk" the third order derivative of position with respect to time, that is, the variation of acceleration. Some say that the derivative of jerk with respect to time (the fourth derivative of position with repsect to time) is called "jounce" or "snap".

Related Questions

What long position is necessary to hedge a short call option?

It depends on whether the short call is covered or naked. If you have a short covered call (you own the stocks you wrote the call on), you wouldn't hedge it--if the call gets exercised you turn over the stocks you own and call it good. If you have a short naked call (you don't own the stock), hedge with a long call that has a strike price no more than the strike price of the short call. Maybe a few bucks less, if you can get it--if the counterparty to your short call exercises it, you exercise your long call, turn over the stock you received. Your profit will be the difference between the premiums on the calls, plus the difference between the strike prices.


How do you hedge a call option?

You hedge a call you sold by purchasing a put in usually the same security.


If you use call options to hedge a short sale does exercising the call close out the short?

No. The only way you can close a short is by purchasing the stock and returning it to whoever you borrowed it from.


What is to spread an option?

To spread an option, or to create an option spread, is to put on a corresponding short position onto your existing long position (or vice versa), in order to create options spreads with specific payoff profiles. For instance, if you bought a call option, it would have limited downside risk with unlimited profit potential. But if you sold an out of the money call option on top of that call option, you would create a call spread which lowers capital outlay but also limited upside profit potential.


Explain the difference between a call option and a long position in a futures contract?

The only difference between a long call option and a long futures position is the derivative itself--one of them is an option, the other is a futures contract.


Short Call (Naked Call / Uncovered call)?

A short call, also known as a naked call or uncovered call, is a high-risk option strategy used by traders who expect a stock or other underlying asset to either decline or stay below the strike price of the option sold. This strategy involves selling a call option without owning the underlying asset.


What do you call a group of bushes called?

a thicket


How can one effectively hedge a long stock position?

One can effectively hedge a long stock position by using options, such as buying put options or selling call options, to protect against potential losses in the stock's value. This strategy allows the investor to limit their downside risk while still maintaining exposure to potential gains in the stock.


How can I sell to close a call option before its expiration date?

You can sell to close a call option before its expiration date by placing an order to sell the option through your brokerage account. This allows you to exit the position and realize any profits or losses before the option reaches its expiration date.


What happens if you write a covered call with a LEAP and someone wants to exercise the underlying option?

If you are "called" on your short option you will have to sell the Underlying contract for that option at the option's strike price, which will likely be the stock itself. You will then have two positions; a long LEAPO and a short stock. http://www.optiontradingtips.com/strategies/covered-call.html


What did Beatrice Potter call the hedge hog?

Mrs. Tiggy-Winkle


What is the proper way to sell call options to protect a long stock position?

A call option is the right to buy a specific stock at a set price (known as the strike price). for this "Right" to lock in a price, the option buyer pays the seller (also known as the grantor) money which is known as the Option Premium. Now here's where most folks get tripped up . . . You can enter the market by Buying the call (go long) or selling the call (grant, go short, or sell). If you buy the call, your risk is limited to the money that you paid the seller, i.e. the Option Premium. Your potential profit is unlimited, in the sense that if you hold the right to buy Apple at $500, you would continue to make money provided Apple continues to rise. However, if you are the seller or grantor - you sell a call - your profit is now limited to the Option Premium that you received, and your risk is unlimited. By selling the option you have essentially made a price guarantee on a stock in exchange for a lump sum payment - the option premium. So some investors utilize what is called "Covered Calls." They buy the underlying stock, say 1000 shares of apple. They are now "long" apple. Next they "Grant" (sell) call options against their long apple position. They receive the "option Premium" on the calls from the buyer, which is credited in their account. They are now long the stock, and short the call options. If apple stays the same or goes down, they owe the option purchaser nothing, and get to keep his money (option premium) once the options expire. If the price rises, the grantor is a loser on the option, but is covered by his long apple stock position, example - if he bought Apple at 400 and then granted Call options against it at a strike price of 400, if apple goes to 500 he essentially takes his winnings on his Apple Stock, and passes them (covers) his call option losses. So to clarify, your answer by selling calls against a long stock position, you lock in the option premium, which could essentially act as a limited cushion in the amount of that premium, should the stock price remain unchanged or fall in an amount of less than the option premium received.