Options Trading 101 - What You Need To Know To Start
An option is a securities contract, a “call” or a “put,” that gives you the right to buy (call) or sell (put) the underlying equity, index, or ETF. Options Basics: How to Sell Covered Calls But from the graph above, we see there are four different options trading players ., Call Option Buyer, Call option seller, Put option buyer, Put Option Seller. Call option and put option buyers have limited risk to the tune of option premium but have unlimited gains potential.
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