Understanding Options: A Quick Foundation
An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a fixed price (strike price) on or before expiration.
Call Option → Right to buy
Put Option → Right to sell
Option buyers pay a premium and have limited risk but unlimited or significant upside.
Option sellers (writers) receive the premium but hold potentially large risk.
Strategies combine long/short calls and puts to shape unique payoff structures.
An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a fixed price (strike price) on or before expiration.
Call Option → Right to buy
Put Option → Right to sell
Option buyers pay a premium and have limited risk but unlimited or significant upside.
Option sellers (writers) receive the premium but hold potentially large risk.
Strategies combine long/short calls and puts to shape unique payoff structures.
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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.