options trading
Contracts for speculation
Options trading is the buying and selling of contracts that give the holder the right—but not the obligation—to buy or sell an underlying asset at a specified price before a set expiration date.
Traders use options to speculate on price movements, hedge existing positions, or generate income: She got into options trading to leverage her portfolio.
The practice ranges from conservative strategies like covered calls to highly speculative bets that can yield large gains or total losses.
- GreeksNatives of Athens' homeland
- straddleSit with legs spanning
- derivativesThings derived from another
- strike pricePredetermined option execution level
- extrinsic valueWorth from outside sources
expiration date · volatility · arbitrage · hedging · theta · strangle · butterfly · paper trading · speculation · premium · puts · naked · futures contracts · covered · calls · out of the money · leverage · Wall Street
- financebank, CFO, banks, controller, finance
- Exchange Systemsbarter, currency, money, stock market, commodity exchange
- risksrisk, gamble, bet, wager, chance it
- investingstocks, stock, bonds, investing, investor
- stock marketstock, shares, stocks, trading, stock market
- brokeragestock trading, brokers, bond trading, commissions, securities trading
options tradingsavings accounts
Interest-bearing bank deposits
certificates of deposit · money market funds · government bonds · dollar-cost averaging · savings bonds
options tradingdollar cost averaging
Fixed periodic investment strategy