Two of the most common options contracts to understand are call ... When you buy a put option, the breakeven price is equal to the strike price minus the option premium. For example, say Tesla ...

For example, imagine a trader bought a call for $ ... the risk of buying a put option is that you could lose all your investment if the put expires worthless. Like selling a call option, selling ...

Here’s an example. Marco wants to own XYZ ... In a protective collar, you buy a protective put and sell a short call. The put safeguards your asset from losing value past the given strike ...

It involves buying and selling Call or Put Options with the same ... spread Option strategy or bear Call strategy. For example, Anil sells a Put Option for a stock trading at ₹2,000 with a ...

Image source: The Motley Fool A call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an ...