Monday, February 23, 2015

Can you please help me to understand 'options'


I get the basic concept. "I promise to sell you 100 shares of X at price Y if you pay me Z up front" but what is a bid price and an ask price? And what are the different strategies when buying and selling options? Is it common to buy an option and sit it out til near the expiration date and then either buy the stock or0 let it expire? Or is it more common to buy an option and then resell that option at either a small profit or small loss?







Submitted February 23, 2015 at 11:31PM by maize_maze http://ift.tt/1AELv6S

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