Option Trading Basics
Author: Tony Spann
Options trading can increase the profits you make when trading Stocks if you understand how to use them and know what you are doing. Options can be a very useful tool that the average investor can use to enhance their returns.
This article - Options Trading Basics, looks at what options are and discusses some of the options trading strategies traders can use with these versatile instruments.
Options - An Overview
Options give the buyer the right, but not the obligation, to buy (a call option) or sell (a put option) the underlying Stock or futures contract at a specified price up until a specified date.
In other words, options are like tradable insurance contracts.
An investor can purchase a Put o...
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