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In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The upside on this ...
Here’s how options work, the benefits and risks of options and how to start trading options. Skip to main content. 24/7 Help. For premium support please call: 800-290-4726 more ways to reach us ...
Like most things, options trading requires learning by doing. But keeping these common mistakes in mind can help make your learning experience a less costly one. — Bankrate’s James Royal ...
The trader may also forecast how high the stock price may go and the time frame in which the rally may occur in order to select the optimum trading strategy for buying a bullish option. The most bullish of options trading strategies, used by most options traders, is simply buying a call option. The market is always moving.
With an option, you purchase a contract that gives you the right to buy that underlying asset (a "call" option) or sell it (a "put" option) for a given price on a given date if you choose.
In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option.
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