What is Options...
Options is a derivative financial instrument that specifies a contract between two parties for a future transaction on an underlying stock at a reference price (the strike).
Call Options
- Call buyer has right to BUY underlying stock at reference price.
- Bullish - believe future stock price will rise higher than reference price
Put Options
- Put buyer has right to SELL underlying stock at reference price.
- Bearish - believe future stock price will fall lower than reference price.
No comments:
Post a Comment