Basic Option knowledge
Options
An option is a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option
Calls
An Option contract that gives the holder the right to buy the underlying security at a specified price for a certain, fixed period of time
Puts
An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time
Basic Option Strategies
Spreads: Any option position having both long options and short options of the same type on the same underlying security
Straddles: The purchase or sale of an equal number of puts and calls having the same terms
Combination: Any position involving both put and call options that is not a straddle.
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Learn more about Options
Since Options are a very niche investment method, many people have no idea what they even are. Although a simple google search would tell you what an option is, learning more can be an extremely complicated task. The basis of 532 Investing's options education is built around the Chicago Board of Options Exchange's (CBOE) education structure. We require all members to take the entire course, but recommend CBOE to anyone who is curious or wants to learn more about options.
