How stock options can Save You Time, Stress, and Money.

How stock options can Save You Time, Stress, and Money.

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Simply because they ordinarily could Expense a portion of what purchasing an asset outright does, some buyers use options as a way to amass leverage, produce cash flow, or even to help you protect property.

If an investor decides to not exercise that appropriate, the options deal expires and turns into click here invalid, getting rid of the money they expended to purchase it.