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Thankyou for explaining that I really appreciate it Cigarsmoker....

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Kiwiboy00

2,464 Posts.

384

14/04/18

16:42

Post #: 32457391
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Originally posted by Cigarsmoker59 ↑

Options give you the right however not an obligation to buy or sell shares.

A call gives you the right to buy
A put gives you the right to sell

There’s European and USA options from recollection. The former from recollection can only be exercised at expiry date. I might be mistaken on this.

They are a leverage instrument. They have an expiration date. The longer the expiration date, the higher the price. The closer to in being “in the money”, the higher the price.

Courses such as optionetics will teach you strategies using both call and put options.

If the share price is 10... you might buy a put (right to sell) at 9 and call to buy at 11.
Each option say costs 10 cents.

People who hold blue chips also can sell put options as a means of insurance on their shares too.

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Thankyou for explaining that I really appreciate it Cigarsmoker. After reading everything i just might stick to normal share trading for now. Fingers crossed we get good news next week on our investment gamble.

PRL Price at posting: 0.3¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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