WML 0.00% 0.4¢ woomera mining limited

It really all depends on what side of the options trading you...

  1. 151 Posts.
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    It really all depends on what side of the options trading you are on. In this case the benefit is having the option to buy the stock at a set price up to a defined date. (Some options can only be exercised on a certain date). If the stock price exceeds the defined price, great. If it doesn’t reach the defined price then that’s a loss. There are also surrounding parameters that guide the value/price of options, being price of the underlying stock, the rest duration until the option expires, and the volatility of the underlying. That’s a very high level description. I’d recommend reading more before using the instrument as there’s always the possibility that your opinions become worthless.

    there are other interesting aspects to options, like short calls and short puts. These can be interesting tools but also best to do some research first and potentially play with a paper account to gain a better understanding.
 
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