In recent years, I think a lot of new investors, the stock option and want to explain. If you are new to the field, it is hard to grasp the idea of it. For a definition, the stock option is the right to buy some stock at a specified price within a specific time in the future. However, not much has been described definition, most of the time, hard and dry this definition, the Stock option tips is useful for very little to understand what really.
Regardless of the real price of the stock owners and equity, for those who want to stock options that are described in more detail, the transfer it is a contract between the buyer of the option for the future transfer of ownership of shares at a fixed price from time to time. Rather than a sale and purchase of shares of the stock itself, which bought contracts only. There are two types of options, one is a call, the other one is put. Put is the right to sell the stock and the call is right to buy the shares. I have the expiration date can not be after all the options to exercise the right of sale or purchase. So, option is the right to buy or sell a stock at a price that is able to exercise pre-defined in a predefined time. Then, it is possible to buy an option, you are buying this right. Nifty option tips
In this example, stock options, it is possible to obtain more clearly described. I would imagine a company called company. The current stock price is said to be $ 70 in June 2011 for the company. If we were talking of a call option at the beginning itself, some of whom the name of the people, the price of options is the expiration date of September 2011 and the $ 10 will buy a stock option to purchase shares at $ 80 award. So, if you rose to $ 100 in August 2011, the stock price will be able to buy shares at $ 80 that person. He won a total cost of $ 10, it will be $ 80 + $ 10 = $ 90. However, if the stock price falls to $ 50, he (and the option price is $ 10 to $ 30 for the reduction of the share price) you can buy it at $ 80 you lose $ 40. However, he is not obliged to purchase an option, in our case, it is possible to let it expire. If expired, and the price of the option, which is a loss of only $ 10 a person.
Also, I would say for the put option, the company is buying an option to sell the shares at $ 80. If the stock price drops to $ 50, it will be able to sell the shares at $ 80. If the price of the option is $ 10, the company earned $ 20. Price to increase to $ 100, the company will be able to be able to exercise the option of either, or you will lose the 20 + $ 10 = $ 30, it loses only the price of the option, to expire you.
From stock options as described in the example above, we stock prices to buy a call option, you may want to buy a put option when there is a possibility that the price will fall, could rise I found to be only good choice.
However, because of this, understanding the Stock option is useful, before you invest your money in it, it company more licenses for research and advice for the stock options will be explained in more clearly there is a possibility that it is recommended that you consult.
Regardless of the real price of the stock owners and equity, for those who want to stock options that are described in more detail, the transfer it is a contract between the buyer of the option for the future transfer of ownership of shares at a fixed price from time to time. Rather than a sale and purchase of shares of the stock itself, which bought contracts only. There are two types of options, one is a call, the other one is put. Put is the right to sell the stock and the call is right to buy the shares. I have the expiration date can not be after all the options to exercise the right of sale or purchase. So, option is the right to buy or sell a stock at a price that is able to exercise pre-defined in a predefined time. Then, it is possible to buy an option, you are buying this right. Nifty option tips
In this example, stock options, it is possible to obtain more clearly described. I would imagine a company called company. The current stock price is said to be $ 70 in June 2011 for the company. If we were talking of a call option at the beginning itself, some of whom the name of the people, the price of options is the expiration date of September 2011 and the $ 10 will buy a stock option to purchase shares at $ 80 award. So, if you rose to $ 100 in August 2011, the stock price will be able to buy shares at $ 80 that person. He won a total cost of $ 10, it will be $ 80 + $ 10 = $ 90. However, if the stock price falls to $ 50, he (and the option price is $ 10 to $ 30 for the reduction of the share price) you can buy it at $ 80 you lose $ 40. However, he is not obliged to purchase an option, in our case, it is possible to let it expire. If expired, and the price of the option, which is a loss of only $ 10 a person.
Also, I would say for the put option, the company is buying an option to sell the shares at $ 80. If the stock price drops to $ 50, it will be able to sell the shares at $ 80. If the price of the option is $ 10, the company earned $ 20. Price to increase to $ 100, the company will be able to be able to exercise the option of either, or you will lose the 20 + $ 10 = $ 30, it loses only the price of the option, to expire you.
From stock options as described in the example above, we stock prices to buy a call option, you may want to buy a put option when there is a possibility that the price will fall, could rise I found to be only good choice.
However, because of this, understanding the Stock option is useful, before you invest your money in it, it company more licenses for research and advice for the stock options will be explained in more clearly there is a possibility that it is recommended that you consult.
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