BROWSE

Underwater

What is 'Underwater'

An option that would be worthless if it expired today. An underwater option may be either a call or put option. A call option is underwater when its strike price is higher than the market price of the underlying asset. A put option is underwater when its strike price is lower than the market price of the underlying asset. An option's value is determined by its intrinsic value, time to expiration, volatility and the underlying asset's current value.

Explaining 'Underwater'

An underwater option is also known as an "out of the money option." These options are less expensive to purchase but are considered riskier because they are more likely than in-the-money options to expire worthless. A trader might choose to buy underwater options if he had little capital to invest or if he expected a significant move in the underlying asset's price.


Further Reading


First time underwater: The impact of the first-time homebuyer tax credit
ideas.repec.org [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

Underwater archaeology of the world warsUnderwater archaeology of the world wars
www.oxfordhandbooks.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

House arrest: the effects of underwater and low-equity mortgages on small business failure and mobilityHouse arrest: the effects of underwater and low-equity mortgages on small business failure and mobility
www.tandfonline.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

Structure functions for optical wave propagation in underwater mediumStructure functions for optical wave propagation in underwater medium
www.tandfonline.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

Locked in the house: Do underwater mortgages reduce labor market mobility?Locked in the house: Do underwater mortgages reduce labor market mobility?
papers.ssrn.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

BER evaluations for multimode beams in underwater turbulenceBER evaluations for multimode beams in underwater turbulence
www.tandfonline.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

The extended marine underwater environment database and baseline evaluationsThe extended marine underwater environment database and baseline evaluations
www.sciencedirect.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

Two carriers used to suspend an underwater video camera from a boatTwo carriers used to suspend an underwater video camera from a boat
www.tandfonline.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …

Distensible air accumulators as a means of adiabatic underwater compressed air energy storageDistensible air accumulators as a means of adiabatic underwater compressed air energy storage
www.tandfonline.com [PDF]
… up to 12 hours. For online purchase, please visit us again. Contact us at [email protected] for any enquiries. Theoretical Acoustics of Underwater Structures, pp. 1-6 (1997) No Access. INTRODUCTION. https://doi.org/10.1142/9781848160750_0001 …



Q&A About Underwater


Is a call or put option considered underwater?

A call option is considered underwater when its strike price is higher than the market price of the underlying asset. A put option is considered underwater when its strike price is lower than the market price of the underlying asset.

What is an underwater option?

An underwater option is an option that would be worthless if it expired today.

How do you determine if a stock has high volatility?

You can calculate historical volatility by using past data from your company's stock chart. This will give you a good idea of how volatile your stock has been in the past so you can predict future movements with greater accuracy. If you don't have access to historical data, then look at other stocks in similar industries for comparison purposes. For example, if your company makes video games, compare their stock performance to other gaming companies like Activision Blizzard (ATVI) or Electronic Arts (EA). If they are trading at similar prices and have similar levels of volatility then this information should help give you a better idea about what direction your own stocks may move in next.

When did people in the United Kingdom use this term?

During the economic recession between 1991 and 1996 and in Hong Kong between 1998 and 23. These recessions led to increased unemployment and a decline in property prices, which in turn led to an increase in repossessions by banks and building societies of properties worth less than the outstanding debt.

What determines whether an option will be valuable or not?

The value of an options depends on time to expiration, volatility and the underlying assets current value.

How can someone get out from being underwater ?

They need to sell their house at a price higher than what they owe on it or refinance into another mortgage where they owe less money than what their home is worth .

How long has this been going on ?

In

Who can have negative equity?

People and companies alike may have negative equity, as reflected on their balance sheets.

Where do you see these loans being offered today?

Today these loans are offered through subprime lenders such as Ameriquest Mortgage Company, Countrywide Financial Corporation, New Century Financial Corporation, NovaStar Financial Inc., Option One Mortgage Corporation, Ownit Mortgage Solutions Inc., First Franklin Financial Corp., Fremont General Corp., Long Beach Mortgage Co., Accredited Home Lenders Holding Company LLC dba Countrywide Home Loans among others.

Why might someone choose to buy under water options instead of in-the-money ones?

Someone might choose to buy under water options because they have little capital available for investment or because they expect significant movement in the underlying assets price over time.

What is negative equity?

Negative equity is a deficit of owner's equity, occurring when the value of an asset used to secure a loan is less than the outstanding balance on the loan.

Are there any disadvantages associated with buying under water options instead of in-the-money ones?

Yes, there are some disadvantages associated with buying under water options instead of in-the-money ones such as increased risk and decreased

When did people start using this term again?

Since 27, those most exposed to negative equity are borrowers who obtained loans of a high percentage of the property value (such as 9 or even 1). These were commonly available before the credit crunch.

What does it mean for someone with negative equity that they are underwater ?

It means that they owe more money than their home is worth.