You’re putting the asset away from you at a fixed price. What are put options?Ī put option gives you the right, but not obligation, to sell an underlying asset for the strike price during a certain period of time. But when selling one (shorting the call), your potential loss is unlimited unless you also own the underlying stock. And if you buy this type of option, you can only lose the money you spent on it. If the share prices skyrocket, you can see a much greater return by owning an option than you would owning just the shares.
You’re calling it away from another investor at a fixed price. What are call options?īuying a call option gives you the right, but not the obligation, to buy an underlying asset for the strike price price during a certain period of time. There are two main types of options: calls and puts. But stocks aren’t the only option investors can also buy and sell options on other assets, like bonds, commodities and exchange-traded funds (ETFs). Stock option contracts tend to represent 100 shares of the underlying stock. Options traders are speculating that an underlying asset’s price will move one way or another. Even if the actual price of the stock has jumped to $30 on that 29th day, you can still buy that stock for $10. Say you buy an options contract giving you the right to buy a stock for $10 for the next 30 days. Options traders can buy contracts that give them the option to buy or sell an underlying asset for a certain price - called a strike prices - at a certain time. Hawaii Alaska Florida South Carolina Georgia Alabama North Carolina Tennessee RI Rhode Island CT Connecticut MA Massachusetts Maine NH New Hampshire VT Vermont New York NJ New Jersey DE Delaware MD Maryland West Virginia Ohio Michigan Arizona Nevada Utah Colorado New Mexico South Dakota Iowa Indiana Illinois Minnesota Wisconsin Missouri Louisiana Virginia DC Washington DC Idaho California North Dakota Washington Oregon Montana Wyoming Nebraska Kansas Oklahoma Pennsylvania Kentucky Mississippi Arkansas Texas Get Started What is options trading?
0 kommentar(er)
