stock trading terminology
stock trading terminology
How do I choose the strike price where I can buy the option?
Let me make the following example: I want to buy call options of the population "JRJC." I think the stock price will definitely go up. Now the problem is in this scenario that can only invest in this population about 2 days since I'm playing a game simulating acts that ends Friday. The stock is currently trading at $ 26 – $ 27, but the strike prices options are in either $ 25 or $ 30. Which should I choose if I think JRJC will rise, but not exceed the $ 30 mark on Friday. Moreover, What exactly does the word "money" and "outside money" mean? Thanks for the answers
on The money means the stock is trading at or above the exercise price, in the case of a call. for example, a December call 100 in an action that is listed at 100 dollars or more per share that is "in the money" if the stock were to trade below $ 100 per share that the call is considered "out of money "and vice versa for puts. Options trading is risky and best case scenerios is stock options at least six months or so before the expiry date, and much less risky.
