| Stock options are important investments
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| | option contracts. Investors who sell puts
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| to consider when you are building wealth
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| | or calls have the obligation to exercise
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| in the stock market. The most basic
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| | their options contracts.
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| definition for a stock option is a
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| | The price of a stock option must go above
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| contract that allows an investor to
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| | the strike price for investors to
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| purchase or sell a specified stock at a
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| | exercise and make a profit on call
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| specified price, within a specified
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| | options and the price must go below the
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| amount of time. Employers commonly give
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| | strike price for investors to make a
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| stock options as asset based
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| | profit on put options. When options fall
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| compensation, and investors buy and sell
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| | into these ranges, they are called "in
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| options on the stock market to gain
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| | the money".
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| capital. Every stock option is
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| | Options can be used for a wide range of
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| characterized by the name of the stock,
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| | trading scenarios, such as:
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| the strike price, the option contract
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| | -Reducing your risk from stock ownership
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| expiration date and the price that was
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| | -Generating an income from stock you
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| paid for the contract.
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| | already hold
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| Basic Terms:
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| | -Speculative trading in an up or down
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| Call Options- these give the owner the
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| | market
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| right to buy a stock at a specified
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| | -Multi leg option strategies to take
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| price, within a specified amount of time.
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| | advantage of specific market action
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| Investors who buy call options are hoping
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| | -Volatility based strategies to take
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| that the stock value increases before the
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| | advantage of market volatility even if
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| option expiration date.
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| | you do not know which way the market will
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| Put Options- these give the owner the
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| | go.
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| right to sell a stock at a specified
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| | While is it true that options take some
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| price, within a specified amount of time.
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| | time to understand and to master, most
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| Investors who buy put options are hoping
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| | people agree that once they have spent
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| that the stock value decreases before the
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| | the time to properly educate themselves
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| option expiration date.
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| | about options, that they are much better
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| Strike Price- the price that the option
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| | off for doing so.
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| can be bought or sold at.
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| | Many stock traders I know, once learning
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| Options Investor Types: Buyers of Call
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| | about options have never traded a single
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| Options, Sellers of Call Options, Buyers
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| | stock again. They can make more money,
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| of Put Options, Sellers of Put Options
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| | and take less risk by using a properly
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| There is an important difference between
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| | structured option strategy.
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| the investors who buy and investors who
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| | So if anyone is still on the fence, it's
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| sell options. Investors who buy puts and
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| | definitely worth taking the time to learn
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| calls have the choice to exercise their
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| | about options.
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