This is one of essential features of trading in the stock markets. For trading in stocks and shares the basic knowledge of the futures and options segment is essential.
There is an interesting and educating article on option strategy at http://www.stockinvest.in
The excerpt from the article is given below:
Long Call
This strategy consists of buying a Call in the hope that the value of the underlying security will increase. Buying a Call allows to buy a determined number of shares (normally, but not always, 100) at a determined price (strike) before (in some cases only at) a set date (expiration day – normally on the Friday following the third Thursday of the month).
Long Put
This strategy consists of buying a Put in the hope that the value of the underlying security will decrease. Buying a Put allows to sell a determined number of shares (normally, but not always, 100) at a determined price (strike) before (in some cases only at) a set date (expiration day – normally on the Friday following the third Thursday of the month).
Read the complete article at the link.
There is an interesting and educating article on option strategy at http://www.stockinvest.in
The excerpt from the article is given below:
Long Call
This strategy consists of buying a Call in the hope that the value of the underlying security will increase. Buying a Call allows to buy a determined number of shares (normally, but not always, 100) at a determined price (strike) before (in some cases only at) a set date (expiration day – normally on the Friday following the third Thursday of the month).
Long Put
This strategy consists of buying a Put in the hope that the value of the underlying security will decrease. Buying a Put allows to sell a determined number of shares (normally, but not always, 100) at a determined price (strike) before (in some cases only at) a set date (expiration day – normally on the Friday following the third Thursday of the month).
Read the complete article at the link.
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