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

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

    Here’s how options work, the benefits and risks of options and how to start trading options. Skip to main content. 24/7 Help. For premium support please call: 800-290-4726 more ways to reach us ...

  3. Options terms every investor should know - AOL

    www.aol.com/finance/options-terms-every-investor...

    For example, if a call option has a strike price of $40, a premium of $8, and the stock price is at $45, the time value equals $3, because the option’s intrinsic value is $5. Volume.

  4. Call vs. put options: How they differ - AOL

    www.aol.com/finance/call-vs-put-options-differ...

    The breakeven price of the option is equal to the strike price plus the option premium. For example, ... and your maximum loss would be the $20 per share option premium. Put options work similarly ...

  5. Option (finance) - Wikipedia

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

    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.

  6. Exercise (options) - Wikipedia

    en.wikipedia.org/wiki/Exercise_(options)

    An example of a physically settled contract is U.S.-listed exchange-traded equity options. Delivery settles in two business days. It is the most common form of settlement. Physically settled options are mostly American style. [2] Cash settlement – Cash-settled options do not require the actual delivery of the underlier. Instead, the market ...

  7. Box spread - Wikipedia

    en.wikipedia.org/wiki/Box_spread

    For example, a bull spread constructed from calls (e.g., long a 50 call, short a 60 call) combined with a bear spread constructed from puts (e.g., long a 60 put, short a 50 put) has a constant payoff of the difference in exercise prices (e.g. 10) assuming that the underlying stock does not go ex-dividend before the expiration of the options.

  8. How implied volatility works with options trading

    www.aol.com/finance/implied-volatility-works...

    An option’s implied volatility (IV) gauges the market’s expectation of the underlying stock’s future price swings, but it doesn’t predict the direction of those movements.

  9. Understanding futures vs. options: Which is better for you? - AOL

    www.aol.com/finance/understanding-futures-vs...

    Here’s how futures and options work, and their key differences. What are futures? ... Example of option trading. Imagine stock ABC is trading for $20 per share, and you can buy a call option on ...

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