Diogo Filipe Da Conceicao Rolo @DiogoRolo: "📊 𝐋𝐞𝐭’𝐬 𝐭𝐚𝐥𝐤 𝐚𝐛𝐨𝐮𝐭 𝐎𝐩𝐭𝐢𝐨𝐧𝐬..."

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📊 𝐋𝐞𝐭’𝐬 𝐭𝐚𝐥𝐤 𝐚𝐛𝐨𝐮𝐭 𝐎𝐩𝐭𝐢𝐨𝐧𝐬 𝐓𝐫𝐚𝐝𝐢𝐧𝐠 Options are financial derivatives that give you the right, but not the obligation, to buy or sell an asset at a specific price (the strike price) before or on a certain date. There are two main types: 𝐂𝐚𝐥𝐥 𝐎𝐩𝐭𝐢𝐨𝐧𝐬 → Right to buy 𝐏𝐮𝐭 𝐎𝐩𝐭𝐢𝐨𝐧𝐬 → Right to sell ✅ 𝐇𝐨𝐰 𝐜𝐚𝐧 𝐨𝐩𝐭𝐢𝐨𝐧𝐬 𝐛𝐨𝐨𝐬𝐭 𝐠𝐚𝐢𝐧𝐬? With relatively small capital, you can control a larger position (leverage). If the market moves in your favor, the percentage gains can be much higher than buying the asset directly. ⚠️ 𝐁𝐮𝐭 𝐫𝐞𝐦𝐞𝐦𝐛𝐞𝐫… The same leverage that multiplies gains also magnifies losses. Options can expire worthless, meaning you lose the premium you paid. More advanced strategies (like selling options) can even expose you to unlimited risk. 🔎 𝐖𝐡𝐚𝐭 𝐝𝐫𝐢𝐯𝐞𝐬 𝐭𝐡𝐞 𝐩𝐫𝐢𝐜𝐞 𝐨𝐟 𝐚𝐧 𝐨𝐩𝐭𝐢𝐨𝐧? Most traders don’t wait for expiration—they sell their options before that. The option’s price (premium) is influenced by several factors: 1️⃣ 𝐔𝐧𝐝𝐞𝐫𝐥𝐲𝐢𝐧𝐠 𝐀𝐬𝐬𝐞𝐭 𝐏𝐫𝐢𝐜𝐞 Calls rise when the asset goes up. Puts rise when the asset goes down. 2️⃣ 𝐓𝐢𝐦𝐞 𝐭𝐨 𝐄𝐱𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧 (𝐓𝐢𝐦𝐞 𝐕𝐚𝐥𝐮𝐞) More time = higher value. As expiration approaches, options lose value due to time decay (Theta). 3️⃣ 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲 (𝐈𝐦𝐩𝐥𝐢𝐞𝐝 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲) Higher expected volatility = more expensive options. Even if the stock doesn’t move, changes in volatility alone can affect price. 4️⃣ 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐑𝐚𝐭𝐞𝐬 & 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝𝐬 Smaller, but still relevant for longer-dated options. 💡 𝐓𝐡𝐞 𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞 Options are powerful tools that allow you to hedge, speculate, or even generate income. But their pricing is more complex than stocks—it’s about direction, time, and volatility. 👉 Do you see options more as a risk management tool or as a way to amplify speculation?

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