An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their outlook on a specific asset was bearish.
If you’re diving into options trading, you’ll likely come across two common terms: sell to open and sell to close. While they may sound similar, these two strategies serve very different purposes — ...
An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows ...
Trading options is one of the best ways to benefit from fluctuating stock prices. By making calculated predictions and selling or buying options accordingly, you can gain a substantial profit. However ...
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Michael is a former senior editor of investing and trading products for ...