Or you can sell to someone else the call option, which gives them the right to buy the stock for a period of time at a specific price.

For example, you can buy a call option, which gives you the right to buy a stock for a duration of time at a specific price. These rights can be both bought and sold.

A put is the right to sell stock at a fixed price for a specific time period.

A call is the right to buy stock at a fixed price for a specific time period.

OPTION TYPES: CALLS AND PUTSīoth call and put options are contracts that have rights associated with them. The first thing to note is that two types of options exists: call options and put options. Strike prices, premiums, and contracts can sound intimidating at first but rest assured you can get up to speed quickly. If you are just getting started with options, the first step is to learn basic options definitions.

Options Trading For Dummies: The Options Chain.

Options Trading For Dummies: Option Greeks.

Options Definitions: Intrinsic and Extrinsic Value.Options Definitions: Holders and Writers.Options Trading For Dummies: Obligations When Selling Options.Options Trading For Dummies: Terms and Definitions.Some of the institutions we work with include Betterment, SoFi, TastyWorks and other brokers and robo-advisors. By letting you know how we receive payment, we strive for the transparency needed to earn your trust. Thank you for taking the time to review products and services on InvestorMint. With an ever increasing list of financial products on the market, we don’t cater to every single one but we do have expansive coverage of financial products. Our goal is to make it easy for you to compare financial products by having access to relevant and accurate information. We strive to maintain the highest levels of editorial integrity by rigorous research and independent analysis. We don’t receive compensation on all products but our research team is paid from our revenues to allow them provide you the up-to-date research content. Revenues we receive finance our own business to allow us better serve you in reviewing and maintaining financial product comparisons and reviews. When you select a product by clicking a link, we may be compensated from the company who services that product. Financial services providers and institutions may pay us a referral fee when customers are approved for products. Investormint endeavors to be transparent in how we monetize our website.

Options trading for beginners