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  2. What is options trading? A basic overview - AOL

    www.aol.com/finance/options-trading-basic...

    For example, if an option with a strike price of $40 is trading for $8 when the stock is at $45, the option has a time value of $3, because its intrinsic value is $5.

  3. 5 options trading strategies for beginners - AOL

    www.aol.com/finance/5-options-trading-strategies...

    1. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The ...

  4. 7 mistakes to avoid when trading options - AOL

    www.aol.com/finance/7-mistakes-avoid-trading...

    2. Lack of diversification. One of the most common problems when trading options is a lack of diversification. When buying equities, diversification usually means purchasing stock in many ...

  5. Option (finance) - Wikipedia

    en.wikipedia.org/wiki/Option_(finance)

    t. e. In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of ...

  6. Put option - Wikipedia

    en.wikipedia.org/wiki/Put_option

    Put option. In finance, a put or put option is a derivative instrument in financial markets that gives the holder (i.e. the purchaser of the put option) the right to sell an asset (the underlying ), at a specified price (the strike ), by (or on) a specified date (the expiry or maturity) to the writer (i.e. seller) of the put.

  7. Stock option expensing - Wikipedia

    en.wikipedia.org/wiki/Stock_option_expensing

    Stock option expensing. Stock option expensing is a method of accounting for the value of share options, distributed as incentives to employees within the profit and loss reporting of a listed business. On the income statement, balance sheet, and cash flow statement the loss from the exercise is accounted for by noting the difference between ...

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