Jan 28, 2021
6:38:11am
6:38:11am
On an option you have the right, not the obligation, to buy the stock. It’s
a call option b/c you can “call” the stock away from someone else. If the stock is trading for $100/share and you have the option to purchase it for $50/share, you’ve done well.
A put option allows you to “put” the stock up for sale at a certain price. If the stock is trading at $50 but you have the right to sell it for $100, again, you’ve done well.
A put option allows you to “put” the stock up for sale at a certain price. If the stock is trading at $50 but you have the right to sell it for $100, again, you’ve done well.
Originally posted on Jan 28, 2021 at 6:38:11am
Message modified by hansel on Jan 28, 2021 at 6:38:57am
Message modified by hansel on Jan 28, 2021 at 6:39:17am
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