Investors that are looking for a great way to diversify risk, smooth portfolio returns and find profits should learn more about the stock options market. In this section we will start with the very basics of the two types of options and the rights, and opportunities they offer you as a buyer:
Call options: When you buy a call option on a specific stock or index, you are anticipating that the market for that stock or index will rise. Buying a call is a bullish investment.
Put options: Buying a put option is a bearish investment. Option investors will buy puts when they think the price of a stock or specific index is going to fall.
Good day sir/ma
I have been trading for three weeks now,with
some indicators like;breakeouteaglebox,mavingaverage
pivot point and others but i keep loosing.
Please i would like you to assist me in forcat and
technical analysis on forex currency trading.
Learning Options
- Math Question
|2009-11-11 03:35:54
How do you calculate 150% gain/loss in this example?
John Jagerson
- Math
|2009-11-11 04:02:50
If you buy a call for $2 and then sell it for $5 you have made a net profit of $3 (5-2=3). That $3 of profit is 150% of your initial cost of $2 (3/2=1.5)
Does that make more sense?
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