Selling Call Options Explained
Options please explain some details about the options?
Ok … Please tell me if I understood correctly. 1 Call options. If I do not have the reserves and I think it will go, I buy a call. etc etc is easy. 2. If I the stock and I think it will go up? I buy a put option to protect from falling. If it goes all good. If it goes down everything is good, but i do not make a profit, I do not take a huge loss. 3. If I have stock and I think it will remain what should I do? 4. If I did not reserve and I think I will write a guide? and when it drops, I buy low and sell at the strike price for a profit?? as a short circuit? options confuse me! I came
<<<1. If I do not have the reserves and I think it will go up, I buy a call. etc etc is easy.>>> Buying a call is a good strategy if you think the stock will rise and you think the volatility Implicit is too low. This is a bad strategy if you think the stock will rise and you think implied volatility is too high. There are times buying the stock is a better strategy than buying a call option more. It is not uncommon for the owner of a stock to have profit, but the owner of a call option on the stock to have a loss during the same period:. Example: Suppose a stock is trading at $ 50 and you buy a call option with an exercise price of $ 55 for $ 2.50 and you hold the option until maturity. If the stock is $ 54 at the expiration of the owner of the stock would have been $ 4, or 8% per share while the owner of the call option lose $ 2.50, or 100% per share. If the stock is $ 60 at maturity of the owner of the stock would have been $ 10, or 20% per share while the owner of the purchase option was $ 2.50, or 100% per share. <<<2. If I have stock and I think it will go up? I buy a put to protect from falling. If it goes all good. If it goes down everything is good but I do make a profit, I do not take a huge loss.>>> Buying a put is a good strategy if you think the stock will rise and you think implied volatility is too low. This is a bad strategy if you think the stock will rise and you think implied volatility is too high. If you think implied volatility is too high selling a covered call is a better strategy than buying a put. <<<3. If I have stock and I think he will drop what I'm ??>>> sell the stock. <<<4. If I do not have the reserves and I think it will write down a put option? and when it drops, I buy low and sell at the strike price for a profit?? as a short-circuit ??>>> Writing a put option is more appropriate if you think the stock will go up instead of down. Buying a put is a good strategy if you think the stock will fall and you think implied volatility is too low. If you do not think implied volatility is too high or too low, the best strategy is usually to simply sell the stock short.
IB OptionTrader – How to Roll Covered Call Options Up and/or Up