Options trading calls vs puts
Refinance your mortgage
Investors who sell a put are obligated to purchase the underlying stock if the buyer decides to exercise the option. An investor who sells a put may also be selling the put as a way to obtain the underlying security at a cheaper price.
- Navigation menu.
- options strategy with no risk;
- hot forex introducing broker!
- quicken add stock options.
Below is a summary of how options function. What are your choices as a call buyer? What are your two main objectives as a call buyer? As a call seller your maximum loss is unlimited. Your maximum gain as a call seller is the premium already received. What are your choices as a call seller?
What is your main objective as a call seller? As a Put Buyer, your maximum loss is the premium already paid for buying the put option. Your maximum gain as a put buyer is the strike price minus the premium. As a put seller your maximum loss is the strike price minus the premium. Financial instrument.
Call option
This article is about financial options. For call options in general, see Option law.
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources.
When does one sell a call or buy a put option | Motilal Oswal
Unsourced material may be challenged and removed. Economics: Principles in Action. ISBN Options, Futures, and Other Derivatives 10th Edition. NPV Publishing. Derivatives market. Derivative finance.
Essential Options Trading Guide
Forwards Futures. Energy derivative Freight derivative Inflation derivative Property derivative Weather derivative. Categories : Options finance. Hidden categories: CS1 maint: location Articles with short description Short description matches Wikidata Articles needing additional references from October All articles needing additional references.
Namespaces Article Talk.