Tag: underlying security strike

What Does Options Mean In Stocks

What is an option? An option is a contractual agreement that gives the holder the right, but not the obligation, to buy or sell an underlying security at a specific price called the strike price on or before a certain date, called the expiration date. What does it mean to buy an option? When you […]

What Is Option Trade In Stocks

In simple terms, an option trade in stocks is a contract that gives the holder the right, but not the obligation, to buy or sell a security at a set price on or before a certain date. Option contracts can be used for a variety of purposes, including hedging against risk, speculation, and income generation. […]