Before we begin
Before we get into options strategies, it’s essential to understand these key terms you’ll encounter when trading options:
Call – the right to buy | Put – the right to sell | |
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In the money | Strike price is lower than the market price of the asset | Strike price is higher than the market price of the asset |
At the money | Strike price is the same as the market price of the asset | Strike price is the same as the market price of the asset |
Out of the money | Strike price is higher than the market price of the asset | Strike price is lower than the market price of the asset |