: You buy these when you think a stock price will rise .
Buying options gives you the , but not the obligation , to buy or sell a stock at a specific price within a set timeframe. It’s essentially a contract where you pay a fee (the premium ) to "reserve" a price (the strike price ) for a set period (until the expiration date ). The Two Core Types of Options buying options for dummies
They give you the right to 100 shares at the strike price. : You buy these when you think a stock price will rise
They give you the right to 100 shares at the strike price. The Two Core Types of Options They give
If the market price drops below your strike price, the value of your put increases because you can sell the stock at a price higher than the current market rate. Essential Lingo Options Trading for Beginners (The ULTIMATE In-Depth Guide)