Binary options callandput


It is only worthwhile for the put buyer to exercise their option, and force the put seller to give them the stock at the strike price, if the current price of the underlying is below the strike price. For example, if the stock is trading at $66 on the stock market, it is not worthwhile for the put option buyer to exercise their option to sell the stock at $65, because they can sell it for a higher price ($66) on the stock market. 

Forex Analysis and Forecast

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Call options can be In the Money, or Out of the Money. In the Money means the underlying asset price is above the call strike price. Out of the Money means the underlying asset price is below the call strike price. When you buy a call option you can buy it In, At, or Out of the money. At the money means the strike price and underlying asset price are the same. Your premium will be larger for an In the Money option (because it already has intrinsic value), while your premium will be lower for Out of the Money call options.

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Options expirations vary, and can have short-term or long-term expiries. It is only worthwhile for the call buyer to exercise their option, and force the call seller to give them the stock at the strike price, if the current price of the underlying is above the strike price. For example, if the stock is trading at $9 on the stock market, it is not worthwhile for the call option buyer to exercise their option to buy the stock at $65, because they can buy it for a lower price ($9) on the stock market.

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The strike price is the price at which an option buyer can buy the underlying asset. For example, a stock call option with a strike price of 65 means the option buyer can use the option to buy that stock at $65 before the option expires.

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