Lecture%2021 - !"" #$%...

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Unformatted text preview: !"" #$% &!"" ' #$% ( !!" ! )*+ ( !"" #$% &!!" , - ' &!./ )" ! ./)0!"" #$% &!"" ' #$% ( 1" ! ,*2 ( !"" #$% &1" , - ' &!3) ! 3)0!"" 4 5 6 7 * * * About options - CBOE - educational strategy workshop for options investors Page 1 of 6 http://www.cboe.com/education/strategy/ 11/15/2000 The Options Institute Online Learning Center | The Basics | Advanced Concepts | Strategy Discussions | Online Options Toolbox | Frequently Asked Questions | The Options Institute | Bibliography | Bookstore | Glossary | Literature & Publications | Seminar & Event Schedules | Software & Video Equity Strategies Index Strategies Weekly Strategy | | | LEAPS Strategies Interest Rate Strategies Weekly Strategy Archive Buying Calls | Covered Call Options | Covered Combinations | Protective Puts as a Hedge | Cash-Secured Puts The Equity Strategy Workshop is a collection of discussion pieces followed by interactive worksheets. The workshop is designed to assist individuals in learning how options work and in understanding various options strategies. These discussions and materials are for educational purposes only and are not intended to provide investment advice. The inclusion of advertisements on CBOE's website should not be construed as an endorsement of any product, service, or website or as an indication of the value of any claims, recommendations, or other information contained therein. Investment decisions should not be made based upon worksheet outcomes. Access to, or delivery of a copy of, the Options Disclosure Document must accompany this worksheet. Please contact our Investor Service Center with questions or to request more information. Buying Calls After listing situations in which buying calls can be a useful investment tool, this segment outlines the mechanics of call buying and uses a hypothetical example to illustrate possible outcomes. You will then have a chance to reinforce your knowledge by using the interactive worksheets in the Buy Call Worksheet area at the bottom of this page . In addition to an on-line worksheet applet, it contains a FAQ section, important options-related materials, plus downloadable versions of the worksheet. Who Should Consider Buying Calls? An investor who is very bullish on a particular stock. An investor who would like to take advantage of what purchasing options offers: leverage with a limited dollar risk. An investor who anticipates a rise in the value of a particular stock but does not want to commit all of the capital needed to purchase the stock. Buying a call is a simple option strategy and one that is often used. Although buying calls may not be suitable About options - CBOE - educational strategy workshop for options investors Page 2 of 6 http://www.cboe.com/education/strategy/ 11/15/2000 for everyone, it allows the investor the opportunity to profit from an upward move in the underlying stock while having very little capital at risk compared to the amount needed to own the stock....
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Lecture%2021 - !"" #$%...

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