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Canadian BoC Rate Decision N/A 4.75% vs. Exp. 4.50% (Prev. 4.50%) Decided to increase the policy interest rate, reflecting our view that monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target.PUT OPTIONS

CALL OPTIONS

Stay ahead and keep your mind focused.

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Learning

Option Strategies

The simple textbook definition is a buyer of a Call option has the right (but not the obligation) to buy a specified quantity of a security at a specified price (strike price) within a fixed period of time (expiration date).

In theory, outright call buying has unlimited upside with limited downside. I say “unlimited in theory” because securities do not go to infinity, but it can sure feel that way if you sold calls and the market is rallying.

The downside of a call buyer is limited to the price they paid for that call, commonly called the Premium. A seller of a Call has the exact opposite risk profile as the buyer. The seller collects the premium paid for the Call, but also has that unlimited downside.

Below is a Profit & loss graph (you will see this a lot in the coming chapters /pages).

Quiz

Test your skills with are questionnaire and challenge the waves.

If you buy a call is this considered a bullish/bearish or neutral trade

If I buy a Tesla 300 call for $10, what is the maximum you can lose?

If I buy a Tesla 300 call for $10,, what price is my breakeven?

if you sell a 300 call in Google at a price of $25, what is your maximum loss?

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