Frequently Asked Questions
What outcome is right for me?
What is the best time to buy an outcome?
What happens if I sell an outcome before it matures?
What should I do when my outcome expires?
What can go wrong when I buy an outcome?
What happens if everyone only trades options and not underlying assets?
What is the minimum investment amount?
Why should I use Olive now?
Why has nobody else offered Olive's services?
Why is the account value shown in my brokerage account different from the outcome value shown by Olive?
How do I choose an underlier?
How do I build a portfolio of outcomes?
How many outcomes should I have in my portfolio?
How do I know that Olive's outcomes are optimal?
How do I know that I am getting best execution?
Can I use Olive if I do not understand options?
Can I use Olive for my IRA?
Do I need a margin account to use Olive?
Who are Olive’s competitors?
Should I buy and hold a stock rather than use Olive?
Is getting a high ceiling and a large downside cushion too good to be true?
Does Olive offer cryptocurrency underliers?
Does Olive allow naked short call options?
Who can I talk to when I have questions?
- Accelerated upside means making more than the underlier’s gain at specific intervals. For instance, an outcome that has accelerated upside with a gain multiplier of 3x and a ceiling of 30% would see a gain of 30% even when the underlier’s gain is 10%. However, the outcome is capped at the ceiling so if the underlier’s gain is 40%, the outcome would have 30% gain.
- Ceiling refers the maximum gain for the outcome. For instance, an outcome with a 20% upside ceiling would produce 20% gain even if the underlier experiences a 30% gain.
- Cushion refers the breakeven point for the outcome. For instance, an outcome with a 15% downside cushion would incur no loss even if the underlier falls by 15%. However, the outcome will start to incur loss if the cushion is breached.
- Greeks refer to key option statistics used to measure risk and sensitivity:
- Delta measures how much an option's price is expected to change per $1 change in the price of the underlying security or index
- Gamma measures the rate of change in an option’s Delta per $1 change in the price of the underlying stock
- Rho measures the expected change in an option’s price per one percentage point change in interest rates
- Theta measures the change in the price of an option for a one-day decrease in its time to expiration
- Vega measures the rate of change in an option’s price per 1% change in the implied volatility of the underlying stock.
- Options trading level requirements vary by brokerage. Olive's outcomes typically require a minimum option level that allow users to trade spreads and write covered puts. Below are the different levels for TD Ameritrade. Olive would require Tier 2 Standard Margin or Tier 3.
- Tier 1 - Covered: write covered calls and write cash-secured puts
- Tier 2 - Standard Cash: buy calls and puts
- Tier 2 - Standard Margin: create spreads and write covered puts + Tier 2 - Standard Cash
- Tier 3 - Advanced: write uncovered options + Tier 2 - Standard Margin
- Outcome value over time means the historical performance of the outcome, assuming that the outcome is held to maturity.
- Probability of winning means the likelihood of breaking even and doing better than buying the underlier outright or making at least one cent, as implied by the option prices.