Wednesday, May 4, 2011

Stock Options as Invest Tool

One of Invest Tool in stock market is stock options.

Stock options give the owner the right (not obligation) to buy or sell a stock at a specific price on or before a specific date.

There are two types of stock options :
  1. call options : give the owner the right to buy the stock
  2. put options : give the owner the right to sell the stock
An options is exercised when the owner executes the right to buy or sell the stock. Have trading tips on stock options trading?
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