Soybean farmers sell call options for hedging against Price Uncertainty and Harvest Uncertainty.
Nothing destroys the income of soybean farmers more than a sudden price decline during harvest or a unexpected bad harvest. As such, selling call options to buyers guarantees the farmer against a sudden price decline and allows some income to be made even in a bad harvest.
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As far as I know there isn't a "buy option," but a call option is an option to buy so I guess you could think of it as a "buy option."
To get an auto insurance quote from Farmers Insurance Company, either call or visit one of their offices and answer questions regarding personal information and automobile type. Another option is to visit their website and click on "get a quote".
There are a couple of times you'd do it. The first is if you want to automatically lock in a gain. Let's say you have a stock you bought at 15, and you want to double your money on the investment. So you sell a call at 30 with a long expiration date...oh, maybe a year. If at any time the stock crosses the $30 threshold, you exercise the option. You can also use short calls and long puts (sell a call, buy a put) as a hedging strategy. And then there's the call you sell when you just want to make money by collecting premiums--you sell a call at a higher price than you think the stock will reach, and hope it doesn't go that high.
A call option allows its purchaser to buy ("call in") stocks at a certain price on a certain date--say, 100 shares of Walmart for $50 on November 1. A put option allows its purchaser to sell ("put") stocks on a certain price for a certain date. The seller of the option has to buy them (in a put) or sell them (in a call) if the option is exercised.
Regular call options have limited risk and unlimited upside gains while binary call options have limited risk along with limited upside gain.
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An option buy is when you buy an option, whether call option or put option, using the Buy To Open order.
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