Options and futures are two popular investment vehicles that can be used to make profits in the financial markets. An investor must first understand the fundamental concepts of options, such as call and put options, strike prices, and expiration dates, in order to invest in options. The covered call strategy, in which a stock is bought and a call option is then sold on it, is one way to invest in options. To invest in futures, a person must first select a futures contract that fits their investing goals and then decide whether they want to go long or short. Futures can be used for speculation or hedging.
How to invest in options and futures
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