An Overview of Short-Term Options | |
Short-term options are versatile financial derivatives that allow traders and investors to buy or sell an underlying asset at a specified price within a brief period, typically less than a year. These options are popular for their flexibility, leverage potential, and utility in hedging and income generation strategies. However, they come with risks such as rapid time decay and high volatility. This overview explores the key features, advantages, risks, and common strategies associated with short-term options, providing valuable insights for anyone looking to navigate the fast-paced world of options trading. | |
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