How Can Options Be Used for Speculation?
Remember, options trading is complex and high-risk, so it’s important to clearly understand the strategies involved and consider seeking advice from financial advisors.
Category: Option FAQ (Frequently Asked Question)
What Are Binary Options?
Binary options are a type of financial derivative where the payoff is either a fixed amount or nothing. They are called “binary” because there are only two possible outcomes: a
What Is Option Volume?
Option volume refers to the number of option contracts traded during a specific period. It indicates the level of activity or interest in a particular option. High option volume could
What Is Open Interest in Options?
Open interest in options refers to the total number of outstanding contracts in the marketplace that have not been exercised, expired, or offset by delivery. It indicates the liquidity and
What Is an Option Contract?
An option contract is a type of derivative financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified
What Is an Option Chain?
An option chain lists all available option contracts, both puts and calls, for a given security. It displays the strike prices, expiration dates, volume, and pricing for each available contract,
What Are Employee Stock Options (ESOs)?
Employee Stock Options (ESOs) are contracts that give employees the right, but not the obligation, to purchase a certain number of shares in the company they work for at a
What Is a Bear Put Spread Strategy?
A Bear Put Spread is a type of options strategy used when an investor expects a moderate decline in the underlying asset’s price. It involves two put options: The income
What Is a Bull Call Spread Strategy?
A Bull Call Spread strategy is an options trading strategy used when an investor expects a moderate rise in the price of an underlying asset. It involves buying a call