Below is the instructions for part1- ,if you are interested in doing the entire assignment, please PM me- the entire assignment is attached in the file
No more than 300 words count—
Option Trading Assignment – part 1 – due in 24h. if you can’t deliver -don’t handshake plz
. As soon as possible choose a company. Make sure that you choose a company for which a large number of options are traded and in particular, there are MULTIPLE options with an October 20, 2017 maturity. You may not choose a company that does not have MULTIPLE options traded with an October 20, 2017 maturity.
First verify that there are options traded for your company with an October 20, 2017 maturity. Go to Yahoo finance and print the following (make sure you have two copies, one for Professor Mooradian and one for you to keep. It is very important that you keep a copy.): the current stock price, the current option premiums (or prices), both bid and ask (You sell at the bid and buy at the ask.), for all options (all strike prices and all calls and puts) with an Oct 20 maturity. Please also include the contract name for each option, calls and puts. When you go to Yahoo, first go to Finance, then type in your stock ticker symbol in the blank Quote Lookup, then go to Options. Then it is very important to change the date in the drop down box under your company name and stock price to October 20, 2017. The contract name will include the maturity date; please verify that you have option premiums (or prices) for the October 20, 2017 maturity date.
The first part of your assignment is complete when you turn in your print out with the current stock price and all of the current option premiums (or prices) with Oct 20, 2017 maturity only. Note that you will have to repeat this part, if you have selected a company that another group has already selected. My advice is to pick a large enough company, so that there are multiple options traded but not so large that another group will have already selected it. Regardless, you want to organize your group of four students and turn in your stock and option prices as soon as possible, so that you will not have to repeat this part of the assignment. The stock and option prices that you turn in will constitute the starting point for your option trading strategy.
It is also useful to select a company where there is new information about the company released in September and expected to be released between mid-September and October 20. The quality of your assignment is related to your company selection. Do try to give some thought to your company selection.
DUE Sept 18 The print out with all group member names, name of your company, stock price and option prices (bid and ask), contract name for each option, and the date in which you obtained all prices. It is critical to use bid and ask prices for options because spreads can be large.