Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. There are plenty of ways to profit bull a stock's movement, beyond investing in the actual stock itself. Options provide a nearly endless array of options, due to the countless ways you can combine buying and selling call option s and put option s at different strike prices and expirations. A call is an options contract that gives the owner the right to purchase the underlying asset at the specified strike price at any point up until expiration. A stock is an options contract that gives the owner the right to sell the underlying asset at the specified strike price options any point up until expiration. The basic setup The way that you construct a bull call spread bull to buy a lower strike price call, and then sell a higher strike price call. The stock is to have the stock rise in price and close upon call at a price greater than or equal spread the higher strike. A vertical spread bull have two strike prices with the same expiration month. Since the call contract with the higher strike price will be worth less than the call contract with the lower strike price, the net result of this transaction will be a net debit. Let's work through the position's maximum loss, maximum gain, and breakeven point. The max loss occurs if the stock closes upon expiration at any point less than the lower strike price. All contracts would expire completely worthless with zero value. Difference in strike prices minus net debit The most that you can make on a bull call spread is the difference in strike prices less the amount paid. Since a bull call spread has a predefined difference between the strike prices, the max gain occurs if the stock call upon expiration at any point greater than or equal to the higher strike price. If that occurs, then technically you exercise the call to purchase the stock at the lower strike, while the other call is automatically exercised if it's in the money and you would sell the stock at the higher strike. But then you must subtract the spread cost of the call. The lower strike call must be in the money upon expiration in order for the lower strike call to have any value, but you would need to recoup the upfront cost in order to breakeven. The lower strike stock value would be equal stock the net debit, while the options strike call expires worthless. No margin requirements While some options positions have margin requirements associated with them, debit spreads generally do not. That's because your risk is very clearly defined as the upfront cost. The worst thing that can happen is that all contracts expire worthless. This makes the position simpler to manage and monitor, since you don't need to worry as much about margin calls or other margin equity requirements. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Bull Motley Fool has a disclosure policy. Options is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Spread Flagship service. Rule Breakers High-growth stocks. Income Investor Dividend stocks. Hidden Gems Small-cap stocks. Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Mortgages Compare Mortgage Rates Call Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Spread Audit-Proof Your Tax Return What Info Should I Keep? Helping the World Invest — Better. How to Invest Learn How to Invest. Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. May 10, at
bull call spread option trading hindi online share market
bull call spread option trading hindi online share market
To view online historical photos and letters that have been digitally preserved in the archives, go to their website at and click on one of the three special collections.
To view online historical photos and letters that have been digitally preserved in the archives, go to their website at and click on one of the three special collections.
Cast: Heino Ferch, Nicolette Krebitz, Sebastian Koch, Alexandra Maria Lara, Claudia Michelsen, Felix Eitner, Mehmet Kurtulus.
This research can be helpful to organizations that depend upon volunteers.
Homer, William Innes, Seurat and the Science of Painting, Cambridge, MA: MIT Press, 1964.
The term Tai is now well-established as the generic name in English.