Skip to main content

New answers tagged

2 votes
Accepted

Why does the *leverage* of an open-ended option change over time (and so quickly)?

You really shouldn't buy such a product if you have no idea what it is and how it works, especially if the KID states it's the highest level of risk. This is not a simple option. It's even with a ...
AKdemy's user avatar
  • 2,937
1 vote

Can someone explain to me the best option strategy here?

Keep in mind what a call is. These are contracts that give the option owner to buy that particular stock for that particular price. When you write an uncovered call (aka sell an uncovered call), then ...
Allure's user avatar
  • 2,730
3 votes

Can someone explain to me the best option strategy here?

There are two objectives cited in the question, purchasing a stock at a lower price and generating some income now. Answer A is correct as is the explanation B. Writing out-of-the-money uncovered ...
Bob Baerker's user avatar
  • 76.7k

Top 50 recent answers are included