Call Options: This gives the buyer the right to buy an asset at a specific price (strike price) before the option expires.
This strategy involves buying a call option, which gives you the right, but not the obligation, to buy the underlying asset at a specified price (strike price) before or on the expiration date. - Traders use this strategy when they anticipate the price of the underlying asset to rise significantly
When you trade options, you're essentially placing a bet on if a stock will decrease, increase or remain the same in value; how much it will deviate from its current price; and in what time those changes will occur. Based on those parameters, you can choose to enter into a contract to buy or sell a company's stock
Options trading is a type of financial trading that allows investors to buy or sell the right to purchase or sell an underlying asset at a fixed price, at a future date. Options trading operates on the basis that the buyer has the option to exercise the contract but is not under any obligation to do so.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
