A Comprehensive Guide to Understanding and Trading Options in the Stock Market Options trading is a popular form of trading on the stock market. An option is a contract between a buyer and a seller that gives the buyer the right, but not the obligation, to buy or sell a specific stock or underlying asset at a predetermined price on or before a specific date. In this comprehensive guide, we will provide an overview of options trading. This will include the different types of options, how they work, and strategies for trading options on the share market trading. Types of Options There are two main types of options: call options and put options. A call option gives the buyer the right to buy a specific stock or underlying asset at a predetermined price, referred to as the strike pri...
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