- published: 28 Apr 2015
- views: 99837
In finance, an option is a contract which gives the buyer (the owner or holder) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date, depending on the form of the option. The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium. The seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) "exercises" the option. An option that conveys to the owner the right to buy at a specific price is referred to as a call; an option that conveys the right of the owner to sell at a specific price is referred to as a put. Both are commonly traded, but the call option is more frequently discussed.
The seller may grant an option to a buyer as part of another transaction, such as a share issue or as part of an employee incentive scheme, otherwise a buyer would pay a premium to the seller for the option. A call option would normally be exercised only when the strike price is below the market value of the underlying asset, while a put option would normally be exercised only when the strike price is above the market value. When an option is exercised, the cost to the buyer of the asset acquired is the strike price plus the premium, if any. When the option expiration date passes without the option being exercised, then the option expires and the buyer would forfeit the premium to the seller. In any case, the premium is income to the seller, and normally a capital loss to the buyer.
Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options or bullish options give the trader a type of contract or right to buy that particular stock at that options set price. Put options or bearish spreads, obligate the trader to a contract to sell that stock at that set price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very straight forward strategy might simply be the buying or selling of a single option, however option strategies often refer to a combination of simultaneous buying and or selling of options.
Options strategies allow to profit from movements in the underlying that are bullish, bearish or neutral. In the case of neutral strategies, they can be further classified into those that are bullish on volatility and those that are bearish on volatility. Traders can also profit off time decay when the stock market have low volatility as well usually measured by the Greek called Theta. The option positions used can be long and/or short positions in calls and puts.
Option may refer to:
www.skyviewtrading.com Options are priced based on three elements of the underlying stock. 1. Time 2. Price 3. Volatility Watch this video to fully understand each of these three elements that make up option prices. Adam Thomas www.skyviewtrading.com what are options option pricing how to trade options option trading basics options explanation stock options
Options trading can be tricky for beginners. Watch this video to learn how to trade options. Like and share this video by E*TRADE to help others learn options trading. Important Note: Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options at https://content.etrade.com/etrade/estation/pdf/charrisk.pdf before you begin trading options. Moreover, there are specific risks associated with buying options including the risk of the purchased options expiring worthless. Because of the importance of tax considerations to all options transactions, the investor considering options should consult his/her tax adviser as to how taxes affect the outcome of covered call writing. Commissions and other costs may ...
An introduction to Stock Options trading. This webinar is intended to give Beginners an introduction to options trading and basic education information. Find more information on commodities and technical analysis for stock options: http://www.thechartguys.com/tickers/commodities Please Signup for a FREE trial on our website to learn how to trade options for beginners! We offer multiple hours of live webcam coverage a day, in addition to continuous chat room coverage. Join the community today. Chartguys.com Options Technical Analysis Facebook Page: https://www.facebook.com/thechartguys... Chartguys.com Technical Analysis FREE facebook community: https://www.facebook.com/groups/thech... Stocktwits: http://stocktwits.com/ChartGuysDan
Learn how I turned $16,700 into $131,200 on a 1-year trade using LEAPS options on Netlfix (NFLX). This video shows how a professional stock and options trader approaches the Stock Market and uses advanced entry and exit strategies to effectively manage a winning trade, while using the power and leverage of options. ============== OptionTradingCoach.com ============= Learn how to trade the Stock Market like a professional using the power and leverage of options with Option Trading Coach! Subscribe to our YouTube channel: http://www.youtube.com/OptionTradingCoach Follow Tyler on Twitter: https://twitter.com/TylerChianelli Become a Fan on Facebook: https://www.facebook.com/OptionTradingCoach
Trading a smaller account is much harder than trading a larger account. We have less wiggle room to be incorrect in our trades. @doughTraderMike walks through his 3 most important considerations when trading a small account in this segment - staying small, understanding strategy, and cutting losses! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/Y0mAJ Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advance...
http://optionalpha.com - In this video, I'll lay out the complete framework for our system which can help you learn how to generate consistent income trading options. And the reality is that to become profitable you have to do just five things (and can't skip even one of them) each and every month. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook ================== Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha...
Options Trading For Beginners - How To Make Money Online with IQ Option - Working 2017 FREE Trading on DEMO Account - http://binopts.com/reversal-strategy I came into internet marketing learning how to make money online from home in 2017 with zero experience. Binary options trading in the middle of a trend is fine, but trading near a reversal provides a way to jump in on moves as momentum is building in binary options - trend reversal strategy for options trading - options trading for beginners. This often provides a high probability trade using trend reversal strategy because those who were betting on the old trend continuing are forced out of their positions, resulting in a surge in the new binary options trending direction. Options Trading Basics All investors should have a portion of...
How To Trade Options: Calls & Puts Call options & put options are explained simply in this entertaining and informative 8 minute training video which uses 2 cartoon-based scenarios to help you learn how to trade call options and how to trade put options. If you've ever been confused by calls and puts in the past, this video will clear up any confusion you may have had. Also, if you're looking to learn how to trade options, you will learn some simple options trading strategies in this short video. For more training, get my free "dummies" guide to options trading here: http://www.prtradingresearch.com/simple-options-youtube3
http://optionalpha.com Here are the Top 3 Options Trading Strategies for Monthly Income ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that...
www.skyviewtrading.com Options are priced based on three elements of the underlying stock. 1. Time 2. Price 3. Volatility Watch this video to fully understand each of these three elements that make up option prices. Adam Thomas www.skyviewtrading.com what are options option pricing how to trade options option trading basics options explanation stock options
Options trading can be tricky for beginners. Watch this video to learn how to trade options. Like and share this video by E*TRADE to help others learn options trading. Important Note: Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options at https://content.etrade.com/etrade/estation/pdf/charrisk.pdf before you begin trading options. Moreover, there are specific risks associated with buying options including the risk of the purchased options expiring worthless. Because of the importance of tax considerations to all options transactions, the investor considering options should consult his/her tax adviser as to how taxes affect the outcome of covered call writing. Commissions and other costs may ...
An introduction to Stock Options trading. This webinar is intended to give Beginners an introduction to options trading and basic education information. Find more information on commodities and technical analysis for stock options: http://www.thechartguys.com/tickers/commodities Please Signup for a FREE trial on our website to learn how to trade options for beginners! We offer multiple hours of live webcam coverage a day, in addition to continuous chat room coverage. Join the community today. Chartguys.com Options Technical Analysis Facebook Page: https://www.facebook.com/thechartguys... Chartguys.com Technical Analysis FREE facebook community: https://www.facebook.com/groups/thech... Stocktwits: http://stocktwits.com/ChartGuysDan
Learn how I turned $16,700 into $131,200 on a 1-year trade using LEAPS options on Netlfix (NFLX). This video shows how a professional stock and options trader approaches the Stock Market and uses advanced entry and exit strategies to effectively manage a winning trade, while using the power and leverage of options. ============== OptionTradingCoach.com ============= Learn how to trade the Stock Market like a professional using the power and leverage of options with Option Trading Coach! Subscribe to our YouTube channel: http://www.youtube.com/OptionTradingCoach Follow Tyler on Twitter: https://twitter.com/TylerChianelli Become a Fan on Facebook: https://www.facebook.com/OptionTradingCoach
Trading a smaller account is much harder than trading a larger account. We have less wiggle room to be incorrect in our trades. @doughTraderMike walks through his 3 most important considerations when trading a small account in this segment - staying small, understanding strategy, and cutting losses! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/Y0mAJ Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advance...
http://optionalpha.com - In this video, I'll lay out the complete framework for our system which can help you learn how to generate consistent income trading options. And the reality is that to become profitable you have to do just five things (and can't skip even one of them) each and every month. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook ================== Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha...
Options Trading For Beginners - How To Make Money Online with IQ Option - Working 2017 FREE Trading on DEMO Account - http://binopts.com/reversal-strategy I came into internet marketing learning how to make money online from home in 2017 with zero experience. Binary options trading in the middle of a trend is fine, but trading near a reversal provides a way to jump in on moves as momentum is building in binary options - trend reversal strategy for options trading - options trading for beginners. This often provides a high probability trade using trend reversal strategy because those who were betting on the old trend continuing are forced out of their positions, resulting in a surge in the new binary options trending direction. Options Trading Basics All investors should have a portion of...
How To Trade Options: Calls & Puts Call options & put options are explained simply in this entertaining and informative 8 minute training video which uses 2 cartoon-based scenarios to help you learn how to trade call options and how to trade put options. If you've ever been confused by calls and puts in the past, this video will clear up any confusion you may have had. Also, if you're looking to learn how to trade options, you will learn some simple options trading strategies in this short video. For more training, get my free "dummies" guide to options trading here: http://www.prtradingresearch.com/simple-options-youtube3
http://optionalpha.com Here are the Top 3 Options Trading Strategies for Monthly Income ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that...
Bible of Options Class 18 - Options Trading @ Exchange
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Basics of Options Trading, Options, Options Trading For Beginners India, Options Trading Strategies India, Options Trading Strategies India in Hindi, Options Trading Basics India, Options Trading Tutorial, Options Trading For Beginners, Options Trading, Futures and Options Basics India
Basics of Options Trading, Options, Options Trading For Beginners India, Options Trading Strategies India, Options Trading Strategies India in Hindi, Options Trading Basics India, Options Trading Tutorial, Options Trading For Beginners, Options Trading, Futures and Options Basics India
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