Investing For Beginners – Free Investment Articles and Tutorials

Options contracts are an extraordinary mechanism to generate money in the stock market. By combining the simultaneous purchase and sale of option contracts, there is risk profiles popularly known as "spreads", which offer many advantages for an...

Option (Option - Options) - a contract whereby the owner (or buyer) acquires the right to buy or sell an asset within a predefined period (contract period) at a price (strike) predetermined at the time of signing the contract. For this right to buy the...

When you buy or sell options should take into account that in the short term, dividends paid by a company are deducted from the price of its shares. Suppose that Telefonica will pay a dividend on February 20 of $ 0.50 and the day closes February 19 to 20...

All options have an expiration date, after which they cease to exist and have no value. The options can be freely bought and sold until the end of the session date. This is a fundamental difference between buying an option and buy the underlying asset...

The exercise price is the price at which the buyer of a call has the right to buy shares (or any other underlying asset ) and the buyer of the put has the right to sell the shares. It is a fact known to both parties at the time of starting...

The put options are rights to sell. For example, a put option on shares of Telefonica gives the buyer the right of that option to sell shares of Telefonica at a specified price ( strike price ) until a certain date ( expiration date ). The options can...

The call options are rights to purchase. For example a call option on shares of Telefonica gives the buyer the right of this option to purchase shares of Telefonica at a specified price ( strike price ) until a certain date ( expiration date ). The...

Options are rights to buy and sell on an asset (stocks, stock indices, commodities, commodities, etc.)., Called the underlying asset. For example, a stock option are the underlying Telefonica's own shares Telefonica. There are 2 types of option: Call...