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Options Basic

Call Option

Put Option

Shares Strategy

An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.

What is the right to choose?
An option is a contract in which the buyer has the right but not the obligation to purchase or sell a certain quantity of the subject matter at a specified price on or before a specified date.

The so-called option, that is, indicators of the material for the stock / futures contract option, so the formation of a derivative of the re-derivative financial instruments.

An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.
To buy
A buyer who buys an ordinary call has the right to buy one hundred shares of underlying stock at the stated strike price. Thus, a buyer who bought an XYZ call (XYZ June 110 call) had the right to buy 100 shares of XYZ at a price of $ 110 before the June contract expiration date. The buyer may do so by submitting a notice of performance to the option clearing company through his broker or trading company before the expiry date of the option contract. All calls that cover XYZ stock are called an “option class”. Each individual option with a unique transaction month and contract price is called the “option series”. XYZ June 110 call (call) is an individual series.

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. This is the opposite of a call option, which gives the holder the right to buy shares.
A buyer who buys an ordinary put puts the right to sell one hundred shares of the underlying stock at the contracted strike price. Thus, a buyer who bought a ZYX June 50 puts would have the right to sell 100 shares of ZYX at a price of $ 50 before the expiry date of the June contract. In order to fulfill the option and sell the underlying stock at the agreed strike price, the buyer is required to submit a notice of performance to the option clearing company through his broker or brokerage firm prior to the expiry date of the option contract. All puts that cover the ZYX stock are referred to as an “option class”. Each individual option with a unique transaction month and contract price is called the “option series”. ZYX June 50 put (put) is an individual series.

Financial investment, we all know that there are basic analysis, technical analysis. Have you heard about emotional analysis?
Be careful, the market decline rate is always faster than the rise.
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