查看“ShoemakerSchoenfeld62”的源代码

1. Options give the individual the best to purchase or sell the underlying asset or instrument. 2. Youre not required to buy or sell the underlying asset, you only have the correct, if you buy options. Meaning, you can choose to purchase the options, sell the options or do nothing and let it end, depending on what is most advantageous to your position. 3. Options are either call or put. Call options give the power to the consumer to get the options. Put options give the right to the buyer to sell the options. 4. Options are offered per share, but are sold in 100 share lots. Meaning, when the investor purchases 1 option, she or he is buying 100 shares. 5. The buyer only must pay the option premium and maybe not just how much of shares like if you are getting per share. Click this link [https://www.bucketlistly.com/users/blogscamgizxg Hendricks Burchs Achievements — BucketListly] to discover where to flirt with it. As an example, if the option premium of the 50 inventory is 3, the quantity of the agreement is 300 per option. So if the buyer is buying 3 options at 3 per option, since he or she is buying in 100 reveal lots, the full payment could be 900 3 options x 100 shares per option x 3 option premium. 6. Getting stocks is different. You have to pay for per share. For instance, the stock price of Company A is 80. If you wish to buy 100 shares, you would need to pay 8,000. You only have to access a contract whereby youd buy one option at a certain option premium, whereas with options, if you need to invest on 100 shares. 7. If you wish to buy the stock at the end of the contract, that will be the only time where youll pay the total amount of money thats equal to how many option contracts, increased by contract multiplier. Refer to no 6 for example. 8. If his rights are exercised by the buyer to get the option call, the vendor or the author is required to deliver the underlying asset. 9. The seller is obliged to buy the underlying asset, if the buyer exercises his rights to sell the solution put. 10. If the customer wishes to exercise his rights to either buy or sell the underlying asset, the owner must either sell it or buy it at the strike price, regardless of the its current price. 11. In case the buyer of the option decides to complete nothing at the end of the contract for whatever reason, the seller keeps the option premium as income. 12. In computing your income, you have to consider 2 things the option premium and the strike price. The strike price is 50 and In the event the option premium is 2, your break-even point are at 52. So in order for you to make a profit, the stock has to be significantly more than 52. In the event the stock drops below 52, say 49, and there is almost no time left, you wont lose 3 per stock. What youll lose, however, is the option premium youve paid for the contract. Note The figures were only selected of the air to illustrate how options trading work. In real life, figures vary widely so you have to vigilantly examine every one of them..