Intrinsic value
In the article about strike price and intrinsic value of call options we learned that intrinsic value is the difference between the market price of the underlying stock and the option’s strike price. It moves together with the stock price, but can’t be negative. However, we only talked about calls.
Put options are different
With put [...]
Option’s strike price
Options represent a right, but not an obligation. There are two types of options, calls and puts. Call gives you the right to buy a stock, while put gives you the right to sell a stock. One question may come to your mind now. At what price can I buy or sell the [...]
This is an introductory article to options. It explains why they exist, the way they work, and some basic terms like call, put, or underlying.
Options around us
Let’s ask the very basic question that is frequently asked by people who don’t know much (or anything) about options. So, what is an option?
You’ve heard that word many [...]
BeaBu does NOT give investment or trading recommendations
The purpose of this website is sharing ideas from financial markets, investing, and trading. These ideas are intended for entertainment and/or academic (educational) discussion.
The language of statements describing developments in the markets, theories, or trading strategies might sound similar to the language used in investment or trading recommendations [...]
Bear and bull
The title of this website is a combination of the two Wall Street animals. It reflects the attitude towards markets discussed here: trying to take advantage of both up and down moves without becoming too attached or biased towards one side. Being able to switch from bull to bear and from bear to [...]
