Archive for the ‘Basic strategy’ category
Saturday, July 10th, 2010

In option trading there are two player, the seller and the buyer. If you buy a call, that means you are having long call position. Long call gives the owner the right to buy the underlying asset in the contract, but not an obligation.
For example, Alan and Tom agreed on a call options contract where [...]

Saturday, April 3rd, 2010

In put options, the buyer has the right to sell an asset to the writer (the seller). Just like the call asset, it is bounded by a contract which states that the underlying asset will be sold at a particular price and a particular date. But the similarity ends there. In put options, the writer [...]

Friday, February 22nd, 2008

Long call is the basic of option strategy. For beginner, it is the perfect strategy for their first option. A call is an option to buy stock. When buying call option, you are hoping that the underlying will go up. You might know that securities give a target price higher than its current price. In [...]