: The date the contract becomes void. If the stock hasn't moved as expected by this date, the option may expire worthless, and you lose the premium paid. 2. Preparing to Trade
: You buy these if you expect the stock price to rise . They grant the right to buy the stock. how to buy options in stock market
: The fixed price at which the option allows you to buy or sell the stock. : The date the contract becomes void
: Expect to answer questions about your net worth, investment goals, and understanding of option risks. 3. Step-by-Step Buying Process Options Trading: How to Trade Stock Options in 5 Steps Preparing to Trade : You buy these if
Options are contracts that give you the , but not the obligation, to buy or sell 100 shares of an underlying stock at a set price by a specific date.
: This is the price you pay to purchase the option. It is quoted per share, so a $2.00 premium actually costs $200 per contract (100 shares x $2.00).
Unlike stocks, trading options requires a specific approval process from your broker due to the higher risks involved.