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The appeal of buying call options is that they drastically magnify a trader’s profits, as compared to owning the stock directly. With the same initial investment of $200, a trader could buy 10 ...
Here’s the long and the short of it! Going long vs. going short. The distinction between going long and going short is brief but important: Being long a stock means that you own it and will ...
A long ladder is similar to a short strangle but with limited risk in one direction (the downside for a call ladder and the upside for a put ladder), [1] while a short ladder is similar to a long strangle but with limited profit potential in one direction (again, the downside for a call ladder and the upside for a put ladder). [1]
Strangle - where you buy a put below the stock and a call above the stock, with profit if the stock moves outside of either strike price (long strangle). [4] Strangle can be either long or short. In short strangle, you profit if the stock or index remains within the two short strikes. [citation needed]
This effectively gives the owner a long position in the given asset. [2] The seller (or "writer") is obliged to sell the commodity or financial instrument to the buyer if the buyer so decides. This effectively gives the seller a short position in the given asset. The buyer pays a fee (called a premium) for this right. The term "call" comes from ...
Buying Amazon stock now could still prove to be a very smart move. ... The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls ...
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