option

Option trading strategies for stocks that are rising

The benefit of stock options trading is that it requires less money than buying stocks. second thing for any stock option is that a stock may rise upward in price by 1% and the same price movement will cause the option to rise in price by 10%. In stock options trading the traders can make money when stocks price rise without buying the shares. Buying Call Option ... A Call Option gives the right but not obligation to buy shares of a stock at a specified price on or before the expiry date. [caption id="attachment_2286" align="alignleft" width="196"]         Long Call ; Buying call [/ca...
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Option Strategy: Bull Call Spread

When Option trader thinks that the underlying stock price moved up moderately in near term. It is implemented by buying an at the money call option while simultaneously writing a higher striking out of the money call option of same underlying security and the same expiration month. Maximum profit achieved when the price of underlying is greater than or equal to the strike price of the short call. Maximum loss occurs when the price of underlying is less than or equal to the strike price of the long call.
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