Example of a Call Option. Imagine Apple Inc. (AAPL) is trading at $150. A trader buys a call option with a strike price of $160 expiring in one month. If AAPL rises to $170, the call option will allow ...

A Call option is a contract that gives the buyer the right to buy 100 shares of an underlying equity at a predetermined price (the strike price) for a preset period of time.

Options trading can be complex, and the trading jargon may confuse even experienced investors and traders. Two of the most common options contracts to understand are call and put options. Here’s ...

Gillies: Puts and calls. Very simply, a call is the right to buy, a put is the right to sell. Both types of options, of course, come with two parameters. The first is a strike price, the price at ...

Options are divided into two categories: calls and puts. Calls increase in value when the underlying security is going up, and they decrease in value when the underlying security declines in price.

In this article, I will explain the basic put/call ratio method and include new threshold values for the equity-only daily put/call ratio. Key Takeaways.

This covered-call position is equivalent to a short put. How so? With the covered call, you’ll collect $6 or so in dividends by late 2014, so your net exposure is $107.

The Puts to Calls Ratio. The puts to calls ratio, in its various forms, goes back to a Barron's article published in 1971. It's a contrary opinion indicator, ...

Put option: A put option gives its buyer the right, but not the obligation, to sell a stock at the strike price prior to the expiration date. When you buy a call or put option, you pay a premium ...