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An option is a side bet among traders over what the price of a stock will be at a certain time. There are pros and cons to stocks and options, but each works better in different scenarios.
Buy put options on falling stocks. Put options rise in price when the underlying stock falls in price, and this basic option strategy gives the put owner the ability to multiply their money over ...
Here are some of the best option strategies for generating income and what to watch out for. 5 options strategies to generate income 1. Covered calls. Covered calls are one of the safer ways to ...
Stock market indices may be categorized by their index weight methodology, or the rules on how stocks are allocated in the index, independent of its stock coverage. For example, the S&P 500 and the S&P 500 Equal Weight each cover the same group of stocks, but the S&P 500 is weighted by market capitalization, while the S&P 500 Equal Weight places equal weight on each constituent.
Open-high-low-close chart – OHLC charts, also known as bar charts, plot the span between the high and low prices of a trading period as a vertical line segment at the trading time, and the open and close prices with horizontal tick marks on the range line, usually a tick to the left for the open price and a tick to the right for the closing ...
Index options may be tied to the price of either "broad-based indexes" like the S&P 500 or the Russell 3000 or to "narrow-based indexes", which are limited to a particular industry. [ 2 ] The global market for exchange-traded stock market index options is notionally valued by the Bank for International Settlements (BIS) at $368,900 million in 2005.
The stock’s 12-month price target is about 6% higher than the current price, but analysts wonder how much higher it can go. An increasing number recommend holding the stock. An increasing number ...
If the stock closes below the strike price at option expiration, the trader must buy it at the strike price. Example : Stock X is trading for $20 per share, and a put with a strike price of $20 ...