- Employee Stock Options Fact Sheet - National Center for
- 14 Crucial Questions about Stock Options
- Restricted Stock Awards - Fidelity
There 8767 s a wide range of stock option trading software available, and while you certainly can spend a lot of money on a sophisticated software package there is also excellent options software that is available for free download. Be aware that sometimes Continue reading Stock Option Software: Three Superior Choices Reviewed
Employee Stock Options Fact Sheet - National Center for
Most people “trade” options for the short term and sell their contracts well before expiration, simply trying to capture the move they hoped would occur, to avoid the additional time decay in the premium.
14 Crucial Questions about Stock Options
What is so special about $65 a share, April, and the 8rd Friday of each month for that matter? Nothing. Strike prices, options expiration months, and the 8rd Friday are all arbitrarily set by the options exchange.
Restricted Stock Awards - Fidelity
If the stock is at $9 then the price of the option contract might be 55 cents (so $55 per contract, since again each contract represents the right to buy 655 shares). If the stock is at $6 it should make intuitive sense that the right to buy at $65 would be quite a bit less, pricing again determined by the market.
It gets more complicated from here, but many strategies allow you to reduce risk by not focusing on simple leverage to profit, . by selling options. Hedging with options is covered here.
Financial exchanges created options as investment products which give people more choice as to where to put their money. Rather than simply buy or short stocks, options give you the chance to diversify by using investment funds in two primary ways. Continue reading Stock Options Basics For New Investors
I believe any investor can grasp the concepts if they have stock options explained in simple terms, briefly and clearly to them. But please remember: understanding this game and winning at it are two very different things. Consult a licensed financial planner or broker before you invest with real money.
The intrinsic value of the contract is two dollars the difference between the price at which I have the right to buy the shares at where the shares are priced right now.
Obviously no one knows if the market is at the beginning of a new bear market phase for the stock market, but one thing is for sure: if you would like to hedge yourself against the possibility that July 7566 marked the beginning of a downtrend, stock options specifically put options offer many opportunities for protecting yourself against losses. In this article Stock Options Explained will cover the simplest one of all: simply buying puts on stocks that you own.
“Exercising your option” at expiry, which the final holder of an in-the-money option contract is required to do, will require additional funds to buy the shares of course, and you will have to pay commissions when you do sell later.