It might be spinning a bottle, asking your Aunt Jenny what she thinks or just gut feel.
When to calculating moving average with Learn Options and also how to read stock charts for great results!
A Put options is the reverse of the call option.
When to calculating moving average with Learn Options and also how to read stock charts for great results!
Lets assume you buy a call (right to buy) 100 shares of Xyz company at an agreed price (strike price) on an agreed date (expiration date) at say $40 per share and you pay $5 for the option.
When to calculating moving average with Learn Options and also how to read stock charts for great results!
This is the difference between the price you have an option to buy Xyz at in this case $40 and the price it is actually trading at $50.
You might feel that the market is overheated at the present time and want to buy a put (right to sell) option.