But the variety of securities you have at your disposal does not end there. Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. That is, its valueis derived from something else.
In the case of astock option, its value is based on theunderlying stoAll investors should have a portion of their portfolio set aside for option trades. In this video, we talk about the basic terms involved in understanding Options - stock market options trading basics restaurant Strike Price, Premium and so on. How does the premium of a options contract vary or change and what it depends on.Want to learn Futures. Watch our video. Learn option trading and you can profit from any market condition.
Understand how to trade the options market using the wide range of option strategies.Discover new trading opportunities and the various ways of diversifying your investment portfolio with commodity and financial futures.To help you along in your path towards understanding the complex world of financial derivatives, we offer a comprehensive futures and options trading education resource that includes detailed tutorials, tips and advice right here at The Options Guide.
Profit graphs are visual representations of the possible outcomes of optionsstrategies.Profit or loss are graphed on the vertical axis while the underlyingstock price on expiration date is graphed on the horizontal axis.A quick way to scan for option trading strategiesis by using profit graphs. An options contract offers the buyer the right to buy, not the obligation to buy at the specified price or date.
Stock market options trading basics restaurant