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Investment Analysis - Four Basic type of Put and Call Option


Buying a call

Buying a call refers to buying the power to claim the stock at the strike price while the price grows over the strike price at a certain time period. For example, the investor expects the stock price will increase in the future, so he buys the call of that stock. If the price of that stock has increased in the time period, investors could claim the stock from the call writer with the strike price. In this case, the buyer could earn a price gap. However, if the stock price did not increase more than the strike price, then the buyer will lose the power to claim.

买入看涨期权是指在特定时间段内价格上涨超过行使价时,购买以行使价认领股票的权力。 例如,投资者预计未来股价会上涨,因此买入该股票的看涨期权。 如果该股票的价格在该时间段内上涨,投资者可以以行使价向看涨期权发起人索取该股票。 在这种情况下,买方可以赚取价格差距。 但是,如果股价没有上涨超过行使价,那么买方将失去索赔权。



Buying a put 

Buying a put refers to buying the power to claim the stock at the strike price while the price drops lower than the strike price at a certain time period. For example, the investor expects the stock price will decrease in the future, so he buys the puts off that stock. If the price of that stock has decreased lower than the strike price in the time period, investors could sell the stock to the put writer with the strike price. In this case, the buyer could earn a price gap. However, if the stock price did not decrease lower than the strike price, then the buyer will lose the power to claim.

买入看跌期权是指在某一时间段内价格跌至低于行使价的情况下,购买以行使价认领股票的权力。 例如,投资者预计未来股价会下跌,因此他买入该股票的看跌期权。 如果该股票的价格在该时间段内下跌至低于行使价,投资者可以将股票以行使价出售给看跌期权的卖方。 在这种情况下,买方可以赚取价格差距。 但是,如果股价没有低于行使价,那么买方将失去索赔权。



Writing a call 

While the writer thinks that the stock price will increase to a certain price at a certain time period, the writer could write a call and sell it to the call buyer. If the stock price has grown over the strike price, the call writer will lose the option premium. If the stock price did not grow over the strike price, the call writer will earn the strike price.

虽然作者认为股票价格会在某个时间段上涨到某个价格,但作者可以写一个看涨期权并将其出售给看涨期权的买方。 如果股票价格上涨超过行使价,看涨期权的卖方将失去期权费。 如果股票价格没有超过执行价格,则通话作者将获得执行价格。


Writing a put

While the writer thinks that the stock price will decrease to a certain price at a certain time period, the writer could write a put and sell it to the put buyer. If the stock price did not drop over the strike price, the put writer will earn the option premium. If the stock price has dropped over the strike price in a certain period, the put writer will need to buy the stock from the put buyer at the strike price and lose the option premium and price gap

虽然作者认为股票价格会在某个时间段下降到某个价格,但作者可以写出看跌期权并将其出售给看跌期权的买方。 如果股票价格没有跌破行使价,看跌期权的卖方将获得期权费。 如果股票价格在一定时期内下跌超过行使价,则看跌期权卖方将需要以行使价向看跌期权买方购买股票,并损失期权费和价差


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