Stock options are a type of equity derivative, also referred to as equity options. An option is a financial product that is considered a derivative, which means that the value of the underlying asset or security determines or is derived from the value of the option. In the case of stock options, the company's shares (or an index of stocks) serve as their underlying asset. An investor who purchases a stock option has the right, but not the responsibility, to buy or sell the shares at a predetermined price and time. Options come in two flavors: puts, which bet on the stock falling, and calls, which bet on the price rising.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr