Article What Are My Options?

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Dec 19, 2004
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Option trading can be a great way to make money, offering strategies for traders from beginner level to the most advanced.
Before we can begin to make it work, though, there a few basic things that we need to understand.
What You Need to Understand About Options Trading A listed stock option must be one of only two things:

Call option – A right to buy 100 shares of a stock at a fixed price, good through a definite future date
Put option – A right to sell 100 shares of a stock at a fixed price, good through a definite future date

It sounds simple with only two elements, but then so do the numbers 0 and 1. And with just those two digits, in different combinations, anything and everything in the universe can be represented (that’s what digital data is).
The possibilities with options are not quite that limitless, but close enough.
What Is a Listed Stock Option? The “listed” part of listed options means that they trade (are “listed”) on centralized option...
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