Options are financial instruments that give their owner the chance to buy or sell shares of an underlying asset for a defined price before or on the day of expiry of the contract. But what happens...
Category: Option Trading
The relationship between a contract's strike price and the underlying asset's market price is a must-know for anyone looking to invest in the derivatives market. In addition to determining the value...
Stock options allow the trader to buy or sell shares of a stock at an agreed on price and date. Earnings are released quarterly and show the actual profitability of a company. Knowing this,...
Option volatility is ultimately dictated by supply and demand in the market for the underlying security on which the option is based. Buyers and sellers are more likely to transact on options with...
You establish an open position when you sell a call option, whether covered or uncovered or when you buy it. Although each option has its own buyer and seller, there is no mechanism for buying...
Call options are an investment strategy that allows you to buy the right (have the option) to buy a security like a stock at a certain price. You pay a premium now for a chance to profit more in the...