Conversely, put options allow buyers to sell an asset at a certain price before the option’s expiration. Try This: 5 Subtly Genius Moves All Wealthy People Make With Their Money ...

Imagine a trader purchased a put option for a premium of 80 cents with a strike price of $30 and the stock is $25 at expiration. The option is worth $5 and the trader has made a profit of $4.20.

A covered call involves selling a call option (“going short”) but with a twist. Here the trader sells a call but also buys or owns the stock underlying the option, 100 shares for each call sold.

Options provide leverage and flexibility, allowing investors to hedge risks or speculate on market movements. Option trading strategies for beginners 1. Covered calls ...

Kevin takes Tracey through three option examples that beginners would be able to execute, including Johnson & Johnson (JNJ), Simon Property Group (SPG) and Facebook (FB).

1. Uncovered call The appeal of selling options is that it can look like free money, and that’s the case with the uncovered call, which provides an upfront cash payment. In an uncovered call ...

Derivatives can be a cost-effective way to manage risk in your portfolio. Find out how to apply an options strategy to your portfolio. Here’s an example with Molson Coors Canada Inc. (TSX:TPX.B ...

Trading Options is both easy and difficult. Easy because in a stock market where 15%-150% is a big move, Options could move in 100% + easily. Option selling is a trading system and has its own ...