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Of course options can be used
in many ways besides that, for speculative investing and hedging against certain situations.
Basic info- Options gives the right to sell or buy a stock. (not requirement, just the option). * buying futures is the opposite, it is a requirement, but that's another thing
Starting with basic option investing terminology:
calls- buy the "option" to buy 100 shares of the underlying stock at a fixed price and for a fixed period of time.
put- sell the "option" to sell 100 shares of the underlying stock at a fixed price and for a fixed period of time.
strike price- also known as "exercise price" it is the price that the underlying security will be bought or sold at if the option is exercised
expiration date- the different kinds of expiration on options below...
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Common topics in this essay:
- stock option
- Ge Stock Option
- Stock Option Backdating
- stock options
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- A Brief Understanding of Backdating Stock Options
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