What is a Call Option? Before we go to the ‘How to buy a call option’ guide, let’s quickly recap what a call option is. As the name suggests, a call ‘option’ is a contract that gives you the option of buying 100 shares of a stock at a pre-determined price. You can choose to …
What Are Stock Options? Stock options are contracts that give investors the right (but not obligation) to buy or sell a stock at a certain price, before a certain date. Simply put, it’s a method of trading stocks on leverage. For example, when you buy a call option, you buy the contract that will allow …
What are Put Options? Put Options: You buy put options when you believe the stock will go down. A put option is a contract that locks in a selling price of a stock for you until a given date. Generally, a put option is a contract that allows you to shares 100 shares of a …
What are Call Options? Call Options: You buy call options when you believe the stock will go up. A call option is a contract that locks in a purchase price of a stock for you until a given date. Generally, a call option is a contract that allows you to buy 100 shares of a …
