The Options Premium
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An options premium is the cost for buying a call or put option. The two components that affect options pricing are the intrinsic value and time value.
A butterfly spread is a neutral options strategy with both limited risk and limited profit potential. The strategy involves four options contracts with the same expiration month but with three different strike prices. Using either all calls or all puts, an investor sells two options at a middle strike price, while simultaneously buying one contract at a lower and one at a higher strike price.
Options offer investors a way to leverage their capital for greater investment returns. Find out what out the money means for option investors.
Options offer investors a way to leverage their capital for greater investment returns. Find out what in the money means for option investors.
Put option allow investors to hedge an investment they own or speculate in an investment they don't own. Find out more about this type of option and how it can work in an investor's favor.
Call options offer investors a way to leverage their capital for greater investment returns. Find out more about these financial contracts and how they work.
A naked call is one of the riskier options strategies around. Find out how this strategy works, as well as the potential risks and rewards of using it.
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