Stock options offer investors limited downside in pursuing speculative trading strategies. Stock options also offer the ability to hedge existing positions and to minimize risk. Stock options are important in many advanced trading activities. Investors can make money as both a call writer or a call seller depending on market conditions. Stock options enjoy great leverage with a … [Read more...]
Employee Stock Options (ESO); Explained
Employee stock options (ESO) are a form of compensation that corporations give to their executives and senior employees. A stock option granted to specified employees of a company. ESOs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. An employee stock option is slightly different from a regular exchange-traded … [Read more...]
How Do Puts & Calls Work in the Stock Market?
Many people are skeptical about the work ao put and calls system in the stock market .Still there would be amny people who are trading fromm ages and still not clear about the concept of put and call option. Prices and Dates The price at which an option can be exercised is called the "strike price." For call options, if the underlying stock price is above the strike price, … [Read more...]
Future and Options :Concept
A futures contract gives its buyer the obligation to purchase the underlying asset and the seller to sell (and deliver) it at a preset date. (If the futures holder liquidates his position prior to expiration, the delivery clause is voided, obviously.)an options contract, whether a call (buy an asset) or put (sell an asset), grants the holder the right - but not the obligation - … [Read more...]
How to Buy a Call Option for Profit
Options are a best and the powerful way to increase the value of your portfolio while increasing your income and monthly cash flow. If used correctly with right decisions , trading options can make you enormous profits. Contradictory to it , if you are not appropriate with your trading, stock options can wipe out your earnings very quickly. One of the easiest and least risky … [Read more...]