OPTIONS

Tuesday, April 10, 2007

Options Trading Basic

Click the following links to read each of the articles:

* What is Stock Option?
* Do All Stocks Offer Stock Options?
* American vs European Style Options
* What is Option Trading?
* Why Option Trading?
* Stock Trading vs Option Trading
* Stock Option Contract Specification
* What is Call Option?
* What is Put Option?

Buying vs. Selling Options:
* Options Buyer vs Seller
* When Should You Buy / Sell Call or Put Option?
* Potential Risk & Rewards of Options Buyer vs. Seller



Related Topics:
* FREE Trading Educational Videos You Should Not Miss
* Options Trading Basic – Part 2
* Understanding Implied Volatility (IV)
* Understanding Option’s Time Value
* Option Greeks
* Learning Candlestick Charts
* Learning Charts Patterns

Related Posts:

  • Options Buyer vs SellerThere are 4 participants in the options markets:1. Buyers of Call options2. Sellers of Call options3. Buyers of Put options4. Sellers of Put optionsPeople who buy options are calle… Read More
  • Stock Option Contract SpecificationAn option contract specifies the following:The underlying stock (e.g. AAPL, DELL, MSFT, etc.)The Expiration Date of the contract (i.e. Third Friday of the Expiration Month)The Stri… Read More
  • What is Call Option? (Part 2)Click here to go back to “What is Call Option? (Part 1)”Example:Company ABC is currently trading at $23 per share. You believe the stock will be going up within a short time period… Read More
  • What is Put Option?Put option is a contract that gives the buyer of the options the right to sell the underlying security at a particular price (i.e. strike price) on or before a certain date (i.e. e… Read More
  • What is Call Option? (Part 1)Call option is a contract gives the buyer of the options the right to buy the underlying security at a particular price (i.e. strike price) on or before a certain date (i.e. expira… Read More