How To Buy And Sell Options at Buying

How To Buy And Sell Options. The buyer of a call option has the right to purchase the contract’s underlying assets at a specified price (i.e. If you sold an option, you can choose to buy the option back (to close the position) or allow the option to expire worthless.

Through your broker, you become the seller of a call option and collect the premium that the option is selling for. If you bought an option, depending on what the underlying price is, you may decide to sell the option before it expires, exercise the option and buy or sell the underlying security, or allow the option to expire worthless. If you buy options, your reward or profit potential is theoretically unlimited.

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The buyer of a call option has the right to purchase the contract’s underlying assets at a specified price (i.e. The difference between your selling and buying price of options is your profit. Check for the execution of the order; Ad 46,000,000 register users, 178 countries supported, and over 1,800,000 active investors.