When it comes to options trading, the term “break-even point“ often pops up when calculating profits and losses. The break-even point is where the option holder’s gains and losses even out at expiration. It…
Picture an option as a coupon that lets you snag a great deal on a product within a specific time frame. Its value stems from the ability to give you a discount on an item, but you better use it quickly because…
Options can be divided into two main categories: call options and put options. Options can also be classified based on where they’re traded: on exchange or off-exchange. Another important factor is the exercise style, which is…