Prior to transmitting a customer’s option order, the representative must fill out the appropriate order ticket and present it to the trading department or wire room for execution. All order tickets will include:
- Buy or Sell
- Name of underlying security
- Number of contracts
- Type of option
- Expiration date
- Exercise price
- An indication if transaction is opening or closing the contracts
- If an opening sale, a notation regarding covered or uncovered is required
- Account name and number
- Account type, i.e. cash or margin
- Price and time limits if any
- Solicited or unsolicited
- Discretionary authority exercised or discretionary authority not exercised, if applicable
- Time stamp when entered, executed, changed, or canceled
Cabinet Trade / Accommodation Trade
Personal FinanceA quirk in the reservations system can make you pay extra if you don't use this special technique for buying multiple tickets online.
InvestingThere are times when an investor shouldn't exercise an option. Find out when to hold and when to fold.
TradingThe following is intended as a review of basic option terminology, which can be used as a reference as needed: American Options - An option that can be at any point during the life of the contract. ...
InvestingOptions on futures contracts offer another way for day traders to use options. These are traded on the same exchange as the underlying futures contract. Traders should take care to understand ...
TradingLearn how analyzing these variables are crucial to knowing when to exercise early.
TradingThe types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
MarketsA look at trading options on debt instruments, like U.S. Treasury bonds and other government securities.
TradingA brief overview of how to profit from using put options in your portfolio.
ETFs & Mutual FundsLearn about exchange-traded fund (ETF) options and index futures, and why it might be a better decision to use ETF options instead of futures.
Managing WealthThese plans can be lucrative for employees - if they know how to avoid unnecessary taxes.