If the market price goes above your strike price, you can buy the stock at a "discount" or sell the contract for a profit.
They give you the right to 100 shares at the strike price. buying options for dummies
They give you the right to 100 shares at the strike price. If the market price goes above your strike
: You buy these when you think a stock price will fall . : You buy these when you think a stock price will fall
Buying options gives you the , but not the obligation , to buy or sell a stock at a specific price within a set timeframe. It’s essentially a contract where you pay a fee (the premium ) to "reserve" a price (the strike price ) for a set period (until the expiration date ). The Two Core Types of Options