Buying And Selling Stock Options -

: The market price you pay to buy an option or receive when selling one.

: You buy these if you expect the stock price to rise . They give you the right to buy the stock at the strike price. buying and selling stock options

: The fixed price at which the stock can be bought or sold if the option is exercised. : The market price you pay to buy

: One standard contract represents 100 shares of the underlying stock. : The fixed price at which the stock

: You buy these if you expect the stock price to fall . They give you the right to sell the stock at the strike price. How to Get Started

Buying and selling stock options allows you to speculate on a stock's price direction or hedge existing positions with less upfront capital than buying shares outright. Unlike stocks, options are that give you the right (but not the obligation) to buy or sell 100 shares of a stock at a specific "strike price" before an "expiration date". Core Components of an Option

: The final day the contract is valid; if not used by then, it expires worthless. Two Primary Types of Options