Review:
Options Market
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
Options market refers to the marketplace where financial instruments known as options are bought and sold. These instruments give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price within a specified timeframe.
Key Features
- Bid-ask spread
- Strike price
- Expiration date
- Risk management tool
Pros
- Allows investors to hedge against risks in the stock market
- Provides flexibility in investment strategies
- Can be used for speculation or income generation
Cons
- Requires knowledge and understanding of options trading
- Can be complex and risky for inexperienced investors
- Market can be volatile and unpredictable