Trading Options

Put, Call and Strike Options (part II)

Put, Call and Strike Options (part II)

Put, Call and Strike Options (part II) In the previous article (Put, Call and Strike Options) we have shown how to compose the price of an option (time value + intrinsic value) and listed all the variables that can define the value itself. Now we can get into detail, trying to figure out what strategies can be adopted through the combined use of options.    Factors defining the option...

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Options Tutorial: Put Call and Strike

Options Tutorial: Put Call and Strike

Options Tutorial: Put Call and Strike   What is an Option? An Option is a contract whereby the buyer has the right but not the obligation, to buy (call) or sell (put) a certain amount of the underlying within (American option) or at (European option) a specified deadline (Expiry date), at a level of predetermined  price (strike price). In order to obtain this right, the buyer of the option...

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