Tag: holder right obligation sell

What Is A Option In Stocks

Options are a type of security that give the holder the right, but not the obligation, to buy or sell a security at a specific price within a certain time frame. They are often used to hedge risk or speculate on the movement of the underlying security. Options can be traded on a variety of […]

Why Are Options Riskier Than Stocks

Options are riskier than stocks because they are more volatile and have the potential to generate greater losses. Volatility is the degree of price variation over time. Options are more volatile than stocks because their prices can move more sharply up or down in response to changes in the market or individual company news. The […]