Trading Stock Options Archive

  • What are Stock Options?

    What are Stock Options?

    A stock option is a contractual agreement that enables the holder to either buy or sell a security at a selected price for a determined time period. The stock option is immune to changes in its market price during the predetermined time period. When purchasing stock options at anyoption™, you have the choice to either employ a Call option or a Put option. Stock options are usually purchased for speculative reasons, meaning that you (the investor) foresee changes in stock prices on the stock market. With regular stock options, a Put gives you (the holder) either the option to sell or put shares to the other party. The latter would be at a flat Put price. This is despite the decline in the market price. Conversely, a Call gives you (the holder) either an option to buy or call for shares at a fixed call price in spite of a market rise.

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