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  2. What is options trading? A basic overview - AOL

    www.aol.com/finance/options-trading-basic...

    For example, if an option with a strike price of $40 is trading for $8 when the stock is at $45, the option has a time value of $3, because its intrinsic value is $5.

  3. 5 options trading strategies for beginners - AOL

    www.aol.com/finance/5-options-trading-strategies...

    1. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The ...

  4. 7 mistakes to avoid when trading options - AOL

    www.aol.com/finance/7-mistakes-avoid-trading...

    2. Lack of diversification. One of the most common problems when trading options is a lack of diversification. When buying equities, diversification usually means purchasing stock in many ...

  5. Option (finance) - Wikipedia

    en.wikipedia.org/wiki/Option_(finance)

    t. e. In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of ...

  6. Options Trading: A Beginners Guide - AOL

    www.aol.com/options-trading-beginners-guide...

    Options Trading Explained. Options are tradeable contracts that let investors bet on the future performance of individual securities or the stock market as a whole. They give the purchaser the ...

  7. Valuation of options - Wikipedia

    en.wikipedia.org/wiki/Valuation_of_options

    For a put option, the option is in-the-money if the strike price is higher than the underlying spot price; then the intrinsic value is the strike price minus the underlying spot price. Otherwise the intrinsic value is zero. For example, when a DJI call (bullish/long) option is 18,000 and the underlying DJI Index is priced at $18,050 then there ...

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