What is an option?
An option is a standardized contract that trades alongside stocks on the major exchanges.
Stock options form the heart of the Income on Demand system — a fact that tends to intimidate new readers. That’s because they’ve been led to believe options are complicated and risky…so they want nothing to do with them. But the truth is options aren’t so tricky once you understand them.
You can use a broker to buy and sell an option just like a stock. And like stocks, the price goes up and down in response to market conditions.
The biggest difference between stock trading and options trading is what you’re trading. Stocks shares, of course, represent part ownership in a company. When you buy a stock, you buy a part of the company. When you sell your stock, you give up that ownership.
Options are a little different. An options contract gives its owner the right, but not the obligation, to buy or sell a stock at a predetermined price by a predetermined date.
Every option covers 100 shares of stock.
You can learn more about the basics of options by clicking here.
An options contract gives its owner the right, but not the obligation, to buy or sell a stock at a predetermined price by a predetermined date.
The predetermined price is called a strike price, and the predetermined date is called the expiration date.
The option’s price — how much the owner paid for it, or receives for selling it — is called the premium.
- How To Trade Our Research
- How do I remove my subscription from automatic renewal?
- How do I unsubscribe?
- What is my refund policy?
- How can I the find the expiration date of my subscription?
- How and when will my money be returned to me?
- When will I be charged for automatic renewal?
- What is the 5 Minute Forecast?
- Who is Bill Bonner?
- What is Jim Rickards' Strategic Intelligence?
If you are having trouble and cannot find the information you are looking for, please contact us and we will respond as soon as possible.Contact Us
Each of our publications are delivered at different times. View when you can expect each of our publications to be delivered to you.View Publishing Schedule
- About Agora Financial
- Agora Financial Reserve Memberships
- Credit Card Statement Information
- Emails from Agora Financial
- Exchanges (Coinbase & Bittrex)
- Frequent Investment Questions
- Fund Transfers
- General Crypto Questions
- Getting Started with my Subscription
- My Account Information
- My Privacy
- Need More Help?
- Orders and Payments
- Publications and Editors
- Refund Policies
- Subscription Renewal
- Using the Website
- Wallets (Trezor)