There are three regular option cycles: FMAN, JAJO, and MJSD. FMAN stands for February, May, August, and November, which is the pattern for when option contracts on one cycle expire.
If you need a refresher, options are securities that are bets on other securities. For instance, you can place a bet that a certain ETF, index, or other asset will hit a certain price (a “strike price”) by investing in an option. That’s why expiration dates for options are so important: they determine who wins and who loses in the options game.
Unlike long-term investors, options investors are always on their toes. Before an option expires, the options holder can “exercise” the option (which means buying or selling the stock at the strike price, for call and put options respectively) or not, whichever they choose. FMAN is the time when options holders have to choose what to do, like a real MAN.
Related or Semi-related Video
Finance: What is Intrinsic Value (of An ...6 Views
Finance allah shmoop what is the intrinsic value of an
option All right this is brandi She owns a twelve
dollars strike price call option toe buy a share of
my fifteen minutes are up dot com a retirement home
chain for reality tv stars who recently gained self awareness
Well the stock is trading for fifteen bucks a share
of this moment Her strike price is twelve so the
intrinsic value of that option is fifteen minutes twelve or
three bucks that is it is three dollars in the
money and if brandy converted it into a share this
moment and then immediately sold the stock for fifteen dollars
in cash well she'd make three bucks But there's a
catch per call option doesn't expire for five weeks so
that three dollars in the money is actually worth more
than three dollars because she has data or time yet
to exercise and convert or just sell the option itself
So it's worth mohr because well a stock might go
up from fifteen dollars in overtime Stocks go up so
in the next five weeks well couldn't go up a
dime twenty cents twenty five cents and make that three
Dollars worth three ten three twenty three Twenty five Sure
sure it could happen So yeah that's The difference between
actual value and intrinsic value You get seita kickers in
there making the option's worth more than just converting them
into stock and selling them right there And yeah it
looks like our one and a half minutes are up
Up Next
What is a put option? A put option is a type of contract that lets the investor sell shares of a stock at a certain price and within a window of ti...
What is a call option? A call option is a type of contract that lets the investor buy shares of a stock at a certain price and within a window of t...
A naked option isn't as risqueé as it sounds...it's just an option you sell without having enough of the underlying security to cover your butt if...