Types of Options

Call and Put options

There are two types of options

Call and Put options. These two options function the same except for the opposing market conditions.

options trader

Call Option

Call option gives the buyer the right to BUY an underlying asset at an agreed (specified) price on and before the pre-determined date. Naturally, you want to believe that the underlying asset value will appreciate in the near future. The purchase price had been fixed or locked in. You will profit when the future value is higher.

Put Option

Put option gives the seller the right to SELL an underlying asset at an agreed (specified) price on and before the pre-determined date. In this case, you want to believe that the underlying asset value will depreciate in the near future. The sale price had been fixed or locked in. You will profit when you can buy at lower value in the future.

options trader

Put Option

Put option gives the seller the right to SELL an underlying asset at an agreed (specified) price on and before the pre-determined date. In this case, you want to believe that the underlying asset value will depreciate in the near future. The sale price had been fixed or locked in. You will profit when you can buy at lower value in the future.

options trader

In Summary

You will buy Call options if you are betting on the asset price to increase. On the contrary, you want to buy Put options if you worry the asset price could drop. Note that in both cases you are buying the options. Buying the options allow you to do something – which is to buy or sell the asset under the contract.

What is an Option?

We have used an option many times in our life time. When you buy an insurance policy, you buy an option. When you place a deposit for a house you want to buy, you have bought an option. When you buy a movie ticket, you have bought an option…

Types of Options

There are two types of options: Call and Put options. These two options function the same except for the opposing market conditions.

Neutral Trading vs. Directional Trading

Most people love the thrill of directional trading. The prospects of huge gain within a few days or even a few minutes are exciting and mentally satisfying for hitting the jackpot. But this speculative punting comes with a price.

Why do you want to trade with this Iron Condor system?

Iron Condor Academy merely wants to help you set up the trade correctly. Any experienced traders will tell you that the nuances of a successful trade from beginning to the end are what you should be learning, NOT FOCUSING on finding the right trade entries/signals – which is the mainstay of other directional trading systems.

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Selangor, Malaysia