Buying an option pays a premium for a right, and selling to open collects a premium and creates an obligation. Buying to open creates a bought option. Selling to open creates a sold option.
Lesson 15
Buying versus selling an option
Buying an option pays for a right. Selling to open collects a premium and creates an obligation.
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Learn how to compare buying and selling
Read the buyer’s box and the seller’s box for the same sample call. Each of the four checkpoints ends with a two-answer question. Nothing places a trade.
CHECKPOINT 1 OF 4
Choose SOFI
0 / 4 checkpoints earned
When the chart loads, follow its highlighted control to earn your first checkpoint.
- Choose SOFI
- Read the buyer's limit, upcoming
- Read the seller's limit, upcoming
- Read a put seller's limit, upcoming
Loading the practice chart.
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The demo opens the full platform with other stocks, and its numbers change each day. Signed out, nothing there moves real money. If you are signed in with a connected broker, Place trade sends a real order, so read the screens without pressing it.
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