Introduction to Stock Options
Listed options are traded on an options exchange. There are call and put options over stocks and indices and are standardized contracts.
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Stock options can be used for a wide variety of strategies ranging from conservative hedging techniques through to aggressive Options trading strategies. Financially educated investors are familiar with stock options whether they use them or not.
Listed options are traded on an options exchange. There are call and put options over stocks and indices and are standardized contracts.
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Option Trading Strategies usually combine several option contracts to reduce the effects of time decay. Strategies can be market neutral or directional.
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Acquiring stock with a short put option is almost the same as buying stock with a limit buy order. Both methods require the stock price to fall down to a predetermined level.
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