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A call option gives you the right, but not the requirement, to purchase a stock at a specific price (known as the strike price) by a specific date, at the option’s expiration. For this right ...
5 places to find great stocks for options. Let’s identify a potential option strategy and then identify where you might seek out the stocks that could fit well. 1. Buy call options on long-term ...
The Bear Call Credit Spread (see bear spread) is a bearish strategy and consists of selling a call option and purchasing a call option for the same stock or index at differing strike prices for the same expiration. The purchased call option is entered at a strike price higher than the strike price of the sold call option.
Their option obligates them to sell the asset if an investor with a call option exercises their right to purchase it before the expiration date. In either case, they pay a fee for the contract.
A call option on a stock index gives you the right to buy the index, and a put option on a stock index gives you the right to sell the index. Options on stock indexes are similar to exchange-traded funds (ETFs), the difference being that ETF values change throughout the day whereas the value on stock index options change at the end of each ...
Before 2010, the ticker (trading) symbols for US options typically looked like this: IBMAF. This consisted of a root symbol ('IBM') + month code ('A') + strike price code ('F'). The root symbol is the symbol of the stock on the stock exchange. After this comes the month code, A-L mean January–December calls, M-X mean January–December puts ...
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