There are two types of options available: call options and put options.
Call options give the taker the right but not the obligation to buy the shares at a specific price on or before a specific date.
The put options give the taker the right but not the obligation to sell the shares at a specific price [...]
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 [...]
Tags:
Arbitrage Strategy,
Ask Price,
Back Spread,
Bid Price,
Blue Chip Stock,
Breakeven P,
Derivative,
Expiration Date,
In-the-money,
Maximum Loss,
Maximum Profit,
Naked Option,
Option Trading Strategy,
Out-of-the-money,
Strike Price,
Time Value,
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