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Dereivatives - Coggle Diagram

- - - - option premium: price of option
      - expiration date: last day to use it
      - LEAPS: long term options (upto 3 years)
      - covered call: writer owns the stock
      - naked call: writer does not own the stock (riskier)
  - - - anytime upto & on expiry
      - more expensive, more flexible
      - usually for north american stocks
      - think of it like gift card, can use until it expires
    - - only on expiry
      - less expensive, less flexible
      - usually for indices (s&p 500)
      - think of it like concert ticket, can use only on concert day