In option trading, there are many option strategies you can use. There are two basic options: call option and put option. Call contract will give the holder the right to buy an asset at a specific price or strike price. Put contract is the opposite. It gives the right to sell an asset at strike [...]
Options trading for dummies have become a common topic for discussion recently. With the introduction of online options trading, people are getting more and more interested in this mode of investing. While everyday newbies are coming to the business, it is getting increasingly essential for them to get the basic ideas of the trade clear [...]
Option is the right to buy or sell an asset on a certain price and date. For instance, you want to buy a computer from a friend, it would cost you $2000. If you do not have the money to buy it right now, you can tell your friend that you can pay $500 right [...]
Before we can begin to trade in options, we need to understand the basic terminology of these sophisticated financial instruments so that we can start to interpret the mass of figures which appear, when an option chain appears on the screen.
Each option has a so called strike price. This is the price at which the [...]
Option is a very popular derivative because its price is cheaper than other derivative such as future. Blue chip stock is a very volatile stock but it is very expensive. However, by buying option of the blue chip stock, we could earn profit just similarly like buying the stock. Investing and trading option seem to [...]