: You buy these when you think a stock price will fall .
They give you the right to 100 shares at the strike price. buying options for dummies
If the market price drops below your strike price, the value of your put increases because you can sell the stock at a price higher than the current market rate. Essential Lingo Options Trading for Beginners (The ULTIMATE In-Depth Guide) : You buy these when you think a stock price will fall
They give you the right to 100 shares at the strike price. Essential Lingo Options Trading for Beginners (The ULTIMATE
Buying options gives you the , but not the obligation , to buy or sell a stock at a specific price within a set timeframe. It’s essentially a contract where you pay a fee (the premium ) to "reserve" a price (the strike price ) for a set period (until the expiration date ). The Two Core Types of Options
If the market price goes above your strike price, you can buy the stock at a "discount" or sell the contract for a profit.
: You buy these when you think a stock price will rise .