[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:options":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Foptions.md","Options",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-options","Understanding Options",[16,17,18],"p",{},"The buyer pays a premium for the right; the seller (writer) receives the premium and takes on the obligation. In the U.S., a standard stock option contract covers 100 shares.",[16,20,21],{},"Options are used to hedge risk, earn income, or speculate. Buyers can lose the whole premium if the option expires worthless; some selling strategies carry large or unlimited risk.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"trading","Contracts that give the right, but not the obligation, to buy or sell an asset at a set price before a set date.","md",[],{},true,"\u002Fterms\u002Foptions",[35,36,37],"call-option","put-option","leverage",{"title":6,"description":28},"terms\u002Foptions",[41,42,43],"An option is a right, not an obligation.","A standard U.S. stock option covers 100 shares.","Options can hedge or amplify risk.","eZKxYr0pDPiAG6rm2AcbdUhP6vxR_pYMTqaSJygOdUo",[46,50,54],{"title":47,"description":48,"path":49},"Call Option","An option giving the right to buy an asset at a set strike price before expiration.","\u002Fterms\u002Fcall-option",{"title":51,"description":52,"path":53},"Leverage","Using borrowed money or derivatives to increase the size of an investment.","\u002Fterms\u002Fleverage",{"title":55,"description":56,"path":57},"Put Option","An option giving the right to sell an asset at a set strike price before expiration.","\u002Fterms\u002Fput-option",1793374005578]