To exercise an option means to put into effect the right specified in the options contract. An options contract gives the buyer the right, but not the obligation, to buy or sell an underlying security at a specified price on or before an expiration date. If the option buyer decides to buy or sell the […]
Options are contracts between a buyer, known as the option holder, and a seller, who is the option writer. Such a contact gives the holder the right, but not the obligation, to buy or sell an underlying security at a set price by an expiration date. This set price is known as the strike price. […]
The strike price, also known as the exercise price, is the fixed price at which the owner of an option either can buy or sell an underlying security. The strike price is determined at the time the options contract is formed. That strike price is agreed upon between the buyer and seller of the options […]
Here is a guide that can help you learn the ropes to trading options.
An option chain is a matrix listing for a single underlying security that shows all of the available option contracts. Essentially, an option chain is a list of all the call and put options available for trading a particular underlying security, such as a stock. It is crucial that investors are able to read option […]
Calls and puts are option contracts between a buyer, who is known as the holder, and a seller, who is known as the writer. A call option gives the holder the right, but not the obligation, to buy an underlying security at a predetermined price, known as the strike price, by a predetermined expiration date. […]