Bull Put Option ... what? Trading in Team
From wikipedia: In finance the term option means that particular type of derivative title that gives the holder the right but not the obligation, to buy or sell the security on which the option itself is written, called underlying instrument at a specified price (strike price) and at or before a certain date.
Ok, that '? In a nutshell?
Options are contracts that entitle it to those who bought them to do "something " on a "good ," to a certain price "within" a certain date .
" something 'can be bought or sold, depending on the type of contract
" well, "also said below can' be virtually anything: stocks, grain, oil, gold, temperature (!)
"a price" or strike price (strike price) and 'the price at which the option holder can buy or sell the "good "
"date" is the date of expiry of the option. After this date the option and 'paper and becomes part of the statistics:)
Options can be either American or European does not mean which are traded in America or Europe, but simply with the first one may exercise the right at any time during the life of the option, for the latter, only at maturity.
By the way I deal with only the American type.
I note examples of options that are present continuously in the life of every day: booking a trip, the compromise for the purchase of a home, insurance, RC Cars etc. ..
I wrote that the option is a contract, that 'means that for each option there are two parties: a purchaser (buyer) and seller (writer or seller). Then there is an option to buy
'need someone who is willing to sign this contract.
Before the "conclusion" of this contract, the option simply does not exist (as opposed to shares), and while the buyer acquires a right, the seller is committed (and therefore takes on an obligation) to do this' which provides option where the buyer would exercise the right purchase.
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