Options In Stock Market- Learning the Easy Way

The option of a contract is to give the buyer the right, but not the obligation, to buy or sell the property at a fixed price.

Option agreement

1. Deposit or Payment:

   The owner of this type of contract must pay a fixed premium amount for the successful implementation of the transaction. If the cardholder does not pay, he only loses the good. Usually, the premium will be deducted from the gross profit and the investor receives the balance.

2. Price Strike:

   This is a combination where an owner can choose to buy or sell security if they choose to exercise a contract. The price impact is fixed and does not change the term of the contract. It's important to remember the difference between a strike and a market. These changes are for the duration of the contract.

3. Contract Size:

   The size of a contract is the amount to be delivered in the contract choices. These quantities are determined for substance. If the contract is for one hundred shares, the contract holder will buy or sell an option for one hundred shares.

4. Expiration date:

   Each contract has a specified expiration date. And this remained in force until the end of the contract. If the option is not implemented at this time, it will exit.

5. Intrinsic Value:

   The intrinsic value is the selling price minus the current price of the underlying security. Silver Call Settings have an inherent value.

6. Assignment:

   Do not buy, sell or trade insurance with a well-organized contract. A contract arises when the owner exercises the right to trade. In the event that the owner does not exercise his right to a termination, the contract is terminated and the obligation will be null.

7. No obligation to buy or sell:

   In the case of an option contract, the investor has the option of buying or selling the property until the expiry date. But you don't have to buy or sell. If the option holder neither buys nor sells, the option does not expire.