Stock options are financial contracts executed between two parties in an underlying stock or ETF. There are two main types of option contracts: Call options and Put options. In either case, the option buyer pays a premium to the option seller for the right, but not the obligation, to buy/sell 100 shares of the underlying security at a predetermined price in the future. Option sellers, therefore, give up their right and have an obligation to deliver the shares if and when the contract is exercised or reaches expiration. Put options give the buyer the right to sell the stock or ETF whereas calls options give the buyer the right to buy the stock or ETF.
Guide to Stock Options
- Stock Options And The 7 Factors That Determine Their Pricing And Value
- How I Made $3,483 Trading Options On Just This 1 Stock Last Year (Account Proof Shown)
- What Can I Realistically Make My 1st Year Trading Stocks And Options?
- How To Quickly & Easily Find The Best Stocks For Options Trading With 4 Clicks
- Start Our “Options Beginner” Track – A Guided Video Course For New Investors