Option trading seems now more popular than ever before. We all know can help to use the money you are trading or investing options. But for the beginning trader, the concept of trading options can be a bit confusing. In this article will I which ways and the different types of options to speak. I shows the advantage options distributors informed people could have acting not options.
Options two wide and general categories.There are call options and put Optionen.Die use decision whether you want to call or put options in your option trading depends on your thoughts about where the market is going and how you want to make money, on the basis of this opinion.
One of the first concepts that seem, traders find confusing is how the options are pricing.In General, when people see the price of an option, it can sein.Aber anywhere from a few cents to a few dollars, because a stock option represents 100 shares, has the actual price the dealer for an option numbers will be multiplied by 100. Becomes in trading with options, a stock option which is $.25 price actually to buy $ 25 cost.
A call option is the right but not the obligation, a certain stock at a certain price for a certain time to kaufen.Dies allows a dealer purchase the right to 100 shares at the exercise price of the option to buy before the option expires. So, if you have an XYZ $ 50 - call - option that expires next month, buying buy the right to 100 shares of XYZ at $ 50 before the option expires next month. This expiry cycles are perpendicular to the trading of options.
Some traders are not the advantages that others do option trading to do the math. Suppose the above option buy for $. 50. Since you purchase the stock option for $.50 and have the right to buy the material and the $ 50 need the shares to trading on $ 50.50 to make money. This is called your break even price.
We, that you check the share price of XYZ stock, and it is is trading at $ 52. To how much profit we charge on this trade at this price, simply subtract the current share price by the breakeven price.So, in this case you would have profited $ 1.50. And because options in 100 share lots traded this would think to profit translate. While this doesn't like a lot of money, to that initiate this trade you only he had to buy the option for $ 50 to $ 150.
In the above scenario, the dealer for the money is made, if the stock rose. can we employ our option trade skills, when the market goes down?We can bet on.If you are only looking to purchase options, this type of option trading strategy deal would put options.
A put option is the right but not the obligation, a stock to someone at a certain price before a certain time during the verkaufen.Also, dealers would speculate that a stock can go down a put option buy.Let's clarify this with an example.
Suppose that you expect the ABC Warehouse received service.with this in mind, purchase the ABC $ 25, the put option for $.75.Jetzt, remember that under our breakeven price to earn his muss.Um would need to calculate breakeven for this trade for us money we $.75 of $ 25 to subtrahieren.So, once the stock begins camp trading below $ 24.25 will make money.
Trading options is not as confusing as some merchants it out to sein.Das concept buying calls and puts are relatively straightforward and we have seen einfach.Wie can leverage, the potential with limited risk features in trading options found very attractive. some retailers are these two reasons, upset about trading in equity options.
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