Contracts giving the right (not obligation) to buy or sell an asset at a set price by a set date.
Calls give the right to buy; puts give the right to sell. Used for speculation (leveraged directional bets), hedging (puts as insurance), or income (covered calls, cash-secured puts). Options can expire worthless — losses can be 100% of premium paid.
Contracts giving the right (not obligation) to buy or sell an asset at a set price by a set date. Calls give the right to buy; puts give the right to sell. Used for speculation (leveraged directional bets), hedging (puts as insurance), or income (covered calls, cash-secured puts). Options can expire worthless — losses can be 100% of premium paid.
In derivatives, Options is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Calls give the right to buy; puts give the right to sell. Used for speculation (leveraged directional bets), hedging (puts as insurance), or income (covered calls, cash-secured puts).
A contract giving the right to buy a stock at a specified strike price by an expiration date.
A contract giving the right to sell a stock at a specified strike price by an expiration date.
The pre-agreed price at which an option can be exercised.
Mathematical measures of how option prices respond to various factors.
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