An Unbiased View of stock options

An Unbiased View of stock options

Blog Article

Primarily, an option is often a safety bought from one particular investor to a different. The option consumer pays a top quality to the choice writer (the person marketing the derivative).

You should purchase or offer a certain amount of shares of the click here underlying asset within the strike cost on or before the expiration date. You are not obligated to trade the fundamental asset in case You merely choose to invest in or sell in additional favorable marketplace circumstances.