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What Are Stock Options
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You buy or trade stocks, bonds and mutual funds. Some investors use options on stocks or cash indexes to protect and insure the value of their portfolios. A major advantage of options is their flexibility.
You can protect stock holdings from a decline in market price
You can increase income against current stock holding
ɨ ....
Middle of paper
...."buyer." the person who originally sells the put or call is the option "seller."
Options are contracts in which the terms of the contract are standardized and give the buyer the right, but not the obligation, to buy or sell a particular asset at a fixed price (the strike price) for a specific period of time or until expiration. To the buyer, an eq.... |
| Word count: 1328 |
Page count: 5 |
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