Options trading in down markets 4th


Options trading in down markets 4th


There are a number of reasons an investor would use options. These include speculation, hedging, spreading, and creating synthetic positions. SpeculationSpeculation is making a bet on the outcome of the future price of something. Unfortunately, very few have the conviction to buy amidst a wave of panic selling. Yet market history suggests otherwise. After the bear market in the early 1970s, buyers were rewarded. In the early 1980s, buyers were rewarded. After the tech bubble of 2000, buyers were rewarded.

For the employee incentive, see Employee stock option. The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium. For the best experience, please update your browser with the latest version. Thank you for visiting Scottrade.com. We have implemented a Skip to Main Content link and improved the heading structure of our site to aid in navigation with a screen reader.

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Options trading in down markets 4th

Options trading in down markets 4th

Options trading in down markets 4th



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