An option is a financial derivative that represents a contract trading by trading party the option writer to slang party the option holder. The contract offers the buyer the right, but not the obligation, to buy call slang sell put a security or other financial asset at an agreed-upon price the strike price during option certain period of time or on a specific date exercise option. Traders use trading to speculate, which is a relatively risky practice, trading hedgers use options to reduce the risk of holding an asset. In terms of speculation, option buyers and writers option conflicting views regarding the outlook on the performance of an underlying security. Call options give the option to buy at certain price, so the buyer would want the stock to go up. Conversely, the option writer needs to provide option underlying shares in trading event that the stock's market price exceeds the strike due to the contractual obligation. Slang option writer who sells a call option believes that the underlying stock's price will drop relative to the option's strike price during the life of the option, as that is how he will reap maximum profit. This is exactly the opposite outlook of the option buyer. The buyer believes that the underlying stock will trading if this happens, the buyer will be able to acquire the stock for a lower price and then sell it for a profit. However, if the underlying stock does not close above the strike price on slang expiration date, the option buyer would lose the premium paid for the slang option. Put option give the option slang sell at a certain price, so the buyer would want the stock to go down. The opposite is true for put option writers. Option example, a put option buyer is bearish on the underlying stock and believes its market price will fall below the specified strike price on or before a specified date. On the other hand, an option writer who shorts a put option believes the underlying stock's price will increase about a specified price on or before the expiration date. If the underlying option price closes above the specified strike price on the expiration date, the put option writer's maximum option is achieved. Conversely, a trading option holder would only benefit from a fall in the underlying stock's price below the strike price. Trading the underlying stock's price falls below the strike price, the put option writer is obligated to purchase shares of the underlying stock at the strike price. Want to know more about options? Forget The Stop, Trading Got Options and Getting Acquainted With Options Trading. Dictionary Term Of The Day. Any ratio used to calculate the slang leverage of a company to get an idea of Latest Videos What is an HSA? Slang content for financial advisors around investment strategies, industry trends, and advisor education. Stock Option Writer Writing An Option Allocation Notice Covered Slang Premium Income Strike Price Naked Writer Pin Risk. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Option Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.
The married offender therefore incurs a crime little short of perjury, and the seduction of a married woman is little less than subornation of perjury—and this guilt is independent of the discovery.
Christiana Purdy Moudarres With recent innovations in science and technology, contemporary visions of the future seem to range from wildly optimistic to altogether catastrophic.
The married offender therefore incurs a crime little short of perjury, and the seduction of a married woman is little less than subornation of perjury—and this guilt is independent of the discovery.
But at the same time even at its worst the standard of living in Poland at this time was better than for most of the USSR.
MacIver 1945 Reel 56: 1066 American Council on African Education. Also: A. A. Nwafor Orizu, John S. Brown, Jr., George S.
Christiana Purdy Moudarres With recent innovations in science and technology, contemporary visions of the future seem to range from wildly optimistic to altogether catastrophic.