How do you lose money from options? (Genuine questions)
I’m super new. I read that options are not an obligation, so surely if you say buy a call at £10 and it stays below, you don’t have to buy it? And thus money is not lost? Or similarly if you sell a put, but it doesn’t drop when you expect it to? I don’t understand how you can lose your money.
Like if you invest £10, and then the stock doesn’t go above or below your expected, where does your money go? Does it go into the business? Or does it just vanish? Obviously it doesn’t return?
Submitted November 22, 2020 at 08:01PM by PureDread https://ift.tt/3pO1te5
