Stock options trading

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By simultaneously buying and selling options of the same class, a wide range of strategies known as spreads can be created. Spreads are characterized by having limited profit potential coupled with limited risk. Stock options strategies Imagine XYZ stock is trading at $100 and you think the stock price will increase over the next 3 months. You buy the XYZ $110 call option expiring in 90 days for $3.50:

Day trading stock options

Long option buyers have the ability to speculate on the theoretical equivalent of 100 shares of stock without putting up nearly as much capital as buying 100 shares of stock outright. Long call buyers speculate on the stock price moving up swiftly, and long put buyers speculate on the stock price moving down swiftly. Let’s dig into each option type a bit deeper below. Selling Put Options Option Strategies Insider may express or utilize testimonials or descriptions of past performance, but such items are not indicative of future results or performance, or any representation, warranty or guaranty that any result will be obtained by you.  These results and performances are NOT TYPICAL, and you should not expect to achieve the same or similar results or performance.  Your results may differ materially from those expressed or utilized by Option Strategies insider due to a number of factors.

Roll your position

Options involve risks and are not suitable for everyone. Options trading can be speculative in nature and carry a substantial risk of loss. 2. Covered call Financial Dictionary. "Call Option."

Stock option selling strategies

In this strategy, traders can make unlimited profits when the market goes up and limited profits if the market goes down. The loss is made only if the market stays within a specific range. In other words, traders can make a profit when the market moves in either direction. 5. Protective Collar FINRA. "Options A-Z: The Basics to the Greeks."