I’ve read a few option books.
THANKS... This is probably the most comprehensive "greeks" article/book I’ve read.

Wonderful blog. …..
A wonder wealth of knowledge there. Thanks so much for your kindness in publishing it!

Thank you very much for the most concise and simplest option intro. Highly recommended.

So far, yours is the best blog/site on basic options notes in the web that I have chanced upon.

Thursday, April 12, 2007

What is Call Option? (Part 1)

Call option is a contract gives the buyer of the options the right to buy the underlying security at a particular price (i.e. strike price) on or before a certain date (i.e. expiration date).
The seller (or writer) is, in turn, obligated to sell the security should the buyer decides to exercise the option.

Call option’s price increases when the underlying stock’s price increases, and decreases as the underlying stock’s price decreases (positive relationship).
Hence, typically we will buy a Call Option if we expect a stock will go up before option expires.

Click here to continue to "What is Call Option? (Part 2)"

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