How Can Any One Use Options.. ? - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Tuesday, December 06, 2016

How Can Any One Use Options.. ?

If any one anticipate a certain directional movement in the price of a stock (Share) , the right to buy or / sell that stock at a predetermined price, for a specific duration of time can offer an attractive investment opportunity.

The decision as to what type of option to buy is dependent on whether any one's outlook for the respective security is positive (bullish) or /  negative (bearish).

If any one's outlook is positive, buying a call option creates the opportunity to share in the upside potential of a stock without having to risk more than a fraction of its market value (premium paid).

Conversely, if any one anticipate downward movement, buying a put option will enable any one to protect against downside risk without limiting profit potential.

Purchasing options offer any one the ability to position yourself according to your market expectations in a manner such that you can both profit and protect hedge with limited risk.
How Can Any One Use Options.. ? Reviewed by S. Chitra on December 06, 2016 Rating: 5 If any one anticipate a certain directional movement in the price of a stock (Share) , the right to buy or / sell that stock at a predeterm...

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