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Stock options. What are they and what can they offer us when investing? Let’s talk about regular stocks first, otherwise known as shares or equities. When investing in regular stocks you are actually purchasing a small piece of ownership in the chosen company and therefore have claim to a part of the corporation’s assets and earnings. This is also known as shareholding.
This basically means that, as a part-owner, you would have claim on the company’s assets. This can be a good investment if luck is on your side but when buying stocks an investor would need a big chunk of capital and then it’s just a case of sitting tight and waiting for a lucky break. Binary stock options offer investors the luxury of investing in the same stocks minus the commitment to ownership and the lay-out of capital.
Binary stock options are simply the right, but not the obligation to buy shares of an underlying stock, at a given price and at a defined time in the future. So, instead of forking out a sum of money to physically purchase a stock, stock options offers leverage and with this one can reap the benefits of a price increase in the value of an asset with less money than buying the asset outright. Otherwise known as a “no tears” investment.
For example, let’s say you decide to purchase binary stock options with McDonald’s Corporation. You read a financial report the other day that there has been increasing international growth in the multi-national food chain and you have seen by following day-to-day reports that their figures are on the rise.
Their current stock price stands at 67.730 and you decide to put $200 on a Call option in the hope that the price will rise before the 1 hour expiration, even just by 0.001. With a 70% return you could be in with a high chance of walking away with $340 (70% of the premium in winnings plus the original $200). And if the stock option expires out-of-the-money, here at anyoption we offer 15% return on out-of-the-money expirations so your losses are kept to a minimum.
One of the benefits of trading in stock options is that you are aware from the onset of what your potential losses are and you can never lose more than the initial premium, definitely offering a certain amount of security for investors. Looking again at the McDonald’s stock option, if you then wanted to secure yourself even further and minimize your losses you could purchase a Put option if you felt the stock might drop but you didn’t want to sell.
So, in this case, if the price took a sudden fall to 67.728 from 67.730 you could purchase a Put option which would give you the right to sell the stock at the strike price of 67.728. If the stock does fall to say 67.726 you could exercise the option and sell at the higher price for a profit. So here we see, different from simply buying assets outright and waiting for a win-fall, the leverage of stock options can be used in attempt to make more money from a price movement than we would from simply buying it like you would do with regular stocks.
For your investing needs, at anyoption we offer a large base of 18 leading stock options to choose from, from the American corporations such as Microsoft, Apple and Coca Cola to the European companies such as Barclays, Deutsche Bank and Vodafone. Our clear website offers an easy, straightforward route to investing in stock options.
With uncomplicated explanations of the already simple market terminology and up-to-the-minute breaking financial news, anyoption makes this already thriving trading platform something accessible to even the beginners among us. Suddenly investing in stocks doesn’t seem like such a scary game.
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anyoption™ is a binary options trading platform offering a wide range of binary options on over 50 underlying assets. These include index options, forex options, commodity
options and stock options. Forex options trading can be carried out on 12 currency pairs. Stock options trading offers options on stocks in the Unites States and Europe.
Binary option trading on the anyoption™ platform offers a payout of 65-71% if an option expires in-the-money and a 15% return if the option expires out-of-the-money.