Investors that are looking for a great way to diversify risk, smooth portfolio returns and find profits should learn more about the stock options market. In this section we will start with the very basics of the two types of options and the rights, and opportunities they offer you as a buyer:
Call options: When you buy a call option on a specific stock or index, you are anticipating that the market for that stock or index will rise. Buying a call is a bullish investment.
Put options: Buying a put option is a bearish investment. Option investors will buy puts when they think the price of a stock or specific index is going to fall.
Mr John Hello i am from india and i want to trade in put a nd call option but i do not know how to trade so tell me what is the premium and how it works and what is the method to calculate put and call premium upto expiration day if the mkt goes down or up
John Jagerson
|2009-03-30 02:30:57
Hey Gurmeet,
Just keep moving through the lessons in the options courses and I think you will get the answers you want.
Roy C
- Options trader
|2009-04-02 11:12:40
Hi John,
Great website with lots of useful and practical information!
I am wondering if you could tell me what an options trader actually do in work?
Kind Regards
John Jagerson
- Work
|2009-04-02 16:02:03
I am not sure I understand your question. What do you mean "do in work?"
Thierry
- Volatility
|2009-10-28 04:55:13
Hello John,
Could you help me out with the following statement:
If an investor is short on the peaks, and long on the lows of a security, the profit will be greatest when volatility is highest.
Thanks,
-Thierry
John Jagerson
- Buy low sell high
|2009-10-28 05:15:55
Basically its another way of saying buy low and sell or short high. If you could accurately forecast peaks and lows and those peaks and lows were very far apart (really volatile) you could make a lot of money.
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