Regardless of how he approached it, the price of a stock was just as likely to go up or down on any given day despite what happened on the previous day.
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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 index future trading with learn day trading and also how the stock market works for great results!
This will give the individual who bought the put option the right to sell that option at and agreed price (strike price) on or before a specific date (expiration date).
When to index future trading with learn day trading and also how the stock market works for great results!
Before you dismiss the last statement out of hand.
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.