Stock Option Tutorial

Call Put Options

Options: Options are provisional derivative contracts that allow an investor to diminish risk and afford a good chance to get profit from stock market investments. It is an agreement between a buyer and a seller.

Call and Put: There are two kinds of options viz calls and puts. Call Option is the right to buy 100 shares of stock for a specified price during a fixed period of time. The option holder has the liberty to do anything, while the Put Option has the right to sell 100 shares of stock for a fixed price in the specified time.

The option buyer gives a premium to the seller, from which the seller allows specific rights to the buyer whereby accepting the specific obligations.

The option provides increased cost efficiency. It has the potential to deliver higher returns and they offer a number of strategic alternatives. Options have also great leverage.

The Call and options are a very flexible tool which offers more investment alternatives. There are various ways to exercise options to recreate other positions.

We are having a team of eminent researchers and technical analysts providing highly potential Option tips and recommendations on stock after evaluating the market conditions.