With time decay, options lose value as expiration nears, emphasizing the importance of timing
Options allow traders to buy or sell assets at a predetermined price by a specific date. Calls predict price increases, while puts anticipate drops, with buyers paying a premium for this flexibility.
Each option includes a strike price, expiration date, and premium cost. Call options gain value when the asset surpasses the strike price, while puts profit when it falls below.
Traders utilize options for various strategies, such as speculating on stocks with limited risk through buying calls or generating income by selling covered calls against owned stocks.
Options allow traders to buy or sell assets at a predetermined price by a specific date. Calls predict price increases, while puts anticipate drops, with buyers paying a premium for this flexibility.
