When Should You SELL a CALL Option?
An investor should sell a call option if there is a possibility that the price of the security may plummet. The premium amount can be recovered if the asset’s price…
When Should You BUY a CALL Option?
For an investor to yield a profit, the price of the security has to increase before its exercise date. When there is indeed a rise in the value of a…
Basic differences between CALL and PUT
CALL Option PUT Option An option contract providing the purchasing rights to a buyer which gives the buyers privilege to purchase a particular derivative like a stock, at a certain…
Introduction to PUT option
As already mentioned in previous topics, a put option is an option contract which provides the selling rights to the buyer which gives the buyers privilege to sell a particular…
Introduction to CALL option
As already mentioned in previous topics, a call option is an option contract which provides the purchasing rights to a buyer which gives the buyers privilege to purchase a particular…
Introduction to Classification of Options
Call and put options are a typical derivative (a contract that derives its value from the performance of an underlying assets like stocks, indices, commodities, currencies, exchange rates, or the…
Introduction to Derivatives
Derivatives are financial contracts whose value is determined by the underlying asset like a stock, bonds, currencies, commodities, and market indices. These are frequently utilized to book profit as well…