Ask the Institute

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May 14, 2012: Can you explain the difference between the Buy-Write strategy and the Covered Call strategy?
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May 07, 2012: Can you discuss how a "special" dividend affects an option's price versus a standard dividend?
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April 30, 2012: Can you explain what a "stock dividend" is and how, from an option investor's point of view, would this type of dividend be treated versus a standard dividend?
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April 23, 2012: Can you explain how the break-even level is calculated on a call option and a put option?
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April 16, 2012: Can you explain the process of Gamma Scalping and how it works?
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April 09, 2012: How are standardized derivatives contracts bundled?
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April 02, 2012: Can you explain the importance of contract size as it relates to trading options?
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March 26, 2012: Can you explain open interest and its importance when trading options?
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March 19, 2012: What does it mean to roll an option and why would an investor do this?
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March 12, 2012: What does it mean when an option is trading at parity?
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Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice. The inclusion of non-CBOE advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.