Options, Unlike
Any Other.
Buy or sell Stocks, Commodities, FX etc. at a specific price within a specific date. This type of trading also gives you the flexibility you need to trade easy, fast and best!
Options are financial contracts that allow buyers the right but not the obligation to buy or sell a fixed amount of asset on a fixed day in the future at a price agreed upon today. The buyer must pay the premium for entering into an options contract.
There are two forms of options:
Call option
A call option gives the buyer the right to buy an underlying asset.
The call option holder (the long position) gets into the contract with the writer (the short position) to purchase or sell a security if the price goes up to the strike price (the price at which option specifies underlying asset can be bought or sold)—on the expiration date.
Put option
A put option gives the buyer the right to sell an underlying asset. Here, the buyer is betting on a lower price in the future on the expiration date. They are bearish and feel that the underlying stock or index price will fall on or before the expiration date. In contrast, the put seller assumes that the price will remain unchanged or rise in the future.
There are 4 basic Option positions:
Positions | Meaning | Strategy | Max. Gain | Max. Loss | Breakeven |
|---|---|---|---|---|---|
Long Call | The right to BUY the underlying | Bullish | Unlimited | Premium | Strike + Premium |
Short Call | The potential obligation to SELL the underlying | Bearish/ Neutral | Premium | Unlimited | Strike + Premium |
Long Put | The right to SELL the underlying | Bearish | Strike - Premium | Premium | Strike - Premium |
Short Put | The potential obligation to BUY the underlying | Bullish/ Neutral | Premium | Strike - Premium | Strike - Premium |
What assets can I trade on Options?
You can trade Options on stocks, indices, metals, energies, crypto, forex, and even the weather!