BE Options Winner !!

One of the securest way to get high profit from stock trading is options. In principle, options is a legitimate contract which it gives right (without any obligation) to buy or sell asset in certain price and in certain period of time. Contract which gives right to buy asset in certain price and in certain period of time is called call option. Meanwhile contract which gives right to sell asset in certain price and in certain period of time is called put option. How Does it works? I'll illustrate in simple way below :

Call Option Contract

1. Call Option Buyer : Christiano (buying right) amounts to US$ 30
   
2. Call Option Seller : Ronaldo (Selling Obligatory) amounts to US$ 30
   
3. Asset Name : Microsoft Stock
   
4. Contract amount : 1 contract (amounts to 100 sheets)
   
5. Valid Term : 2 months From now on
   
6. Christiano pays premium to Ronaldo amounts to US$ 0,6/ sheets x 100 sheets = US$ 60.
   

What happen if in another day the price of Microsoft's stock is rises or decreased??

If I could analyze, first scenario is that the price of Microsoft's stock is rising. Then Microsoft announce to the public that they will launch the new innovative product which will cause The price of Microsoft's stock is rising up to US$ 50. Read More

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