Chapter 04 · Section 4.1
Stop Limit Orders
Which of the following stop limit orders cannot be executed at 6 1/2?
b) Buy 3 July Sperry 45 calls 6 1/4 stop limit 6 1/2
No. Order (b) can be executed if the market price is 6 1/2. The trader wants to buy at 6 1/2 or better (the limit price), but only if the price has become "as bad as" 6 1/4 (the trigger price).
a) Buy 3 July Sperry 45 calls 6 1/4 stop limit
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