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Trading options involves purchasing and selling an underlying asset at a pre-determined price by a specified future date.
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Compared to a simple brokerage account for stock trading, an options trading account usually requires greater capital involvement.
2
After successfully opening the options trading account, you must decide on the type of options contract you want to enter.
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An option contract is valuable only if the underlying stock price closes the option’s expiration period “in the money,” i.e., either above or below the strike price.
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All options contracts have an expiry date, ranging from days to months to years. This period, too, cannot be conjured up from thin air.
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