Vanilla Options

7 Cool Facts about Vanilla Options 

Vanilla options give you the right to buy or sell a security before or on a certain date at an agreed price. For example, you could have a vanilla option to sell a stock at $30, with an expiry of three months. If the stock falls below $30 within three months’ time, then you can sell and make a profit. However, despite being called a vanilla option, there are lots of cool things you need to know.

Calls

There are actually two types of vanilla option. The first one is known as a call, and this gives you the right to buy a security at a given price. If you think that a stock is going to go up before the option expires, then you may buy a call.

vanilla options

Puts

The other type of is known as a put. In this case, this type of option gives you the right to sell a security at a particular price before the option expires. If you think a stock price is going to go down before the option expires then you may buy a put.

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With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.
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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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