Publisher's Synopsis
Are you interested in Options Trading? Then, this is the right book for you!
An option is an agreement to buy and/or sell some financial assets. Options have an expiration date in the United States; the sale could occur on or before that date. There is a pre-arranged asset price. On the stock market, an options contract represents shares of stock. If it is a call option, they can buy shares of a stock with a fixed price per share.
They are called options because the buyer of the contract has the option to proceed with the transaction, and is not obligated to do so. While the buyer has the option to do so or not, the other party to the agreement is legally obligated to the terms set out in the agreement.
Options expire within a period (days, weeks, months, years). It's essential to know their expiration date because it largely influences the price of the option.It's quite rare that the option remains in force between the seller and the original buyer because options are traded on their market like stocks. An option is likely to change hands multiple times, and its price will continuously be fluctuating.
Most options expiration are never exercised, but you need to be on guard about this if you are selling options because if the current owner of the option would benefit by purchasing or selling the shares, there is a risk that they will decide to exercise their rights.
This book covers:
- Option Terminology
- Why Trading Options
- Open Brokerage Accounts
- Stock Options Trading
- Basics Of Options Contracts
- Options Trading Jargon
