Option Tips
Option Tips What is Call Option? A call is an option contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a specified price within a specified time. The specified price is known as the strike price and the specified time during which a sale is made is its expiration or time to maturity. Call options may be purchased for speculation or sold for income purposes. They may also be combined for use in spread or combination strategies. What is Put option ? Puts give holders of the option the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame. Put options are available on a wide range of assets, including stocks, indexes, commodities, and currencies. Put option prices are affected by the underlying asset price and time decay. They increase in value as the underlying asset falls in price, and lose value as time to expir