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In effect, this makes the Call option the opposite of the Put option.When buying stocks, investors are tied to purchasing the asset at market value.
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The call option writer is paid a premium for taking on the risk associated with the obligation.
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Ratio spreads involve buying calls or puts and writing multiple calls or puts that subsidize or even pay in full for the options purchased.Option Spread Trading: A Step-by-Step Guide. the speed of execution has increased while the cost of trading options has.
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