Trading in Options
The Options market has seen an increasing interest in the recent times. It is however not very well understood by most investors. Options are basically contracts that give the buyer a chance to purchase any investment, including stocks, at an agreed price sometime in the future. It is important to make your purchase within the time designated, failing which the opportunity for investment would no longer be available. There are two types of options that are used in trading are – ‘call option’ and ‘put option’. The call option permits the investors to purchase stocks at their strike price prior to the option expiring. The Put option allows investors to sell stocks at their strike prices within the duration of the option. Stocks give the buyer a portion of a company’s ownership. But [...]


