LESSON F Part 1 – How to Read Option Prices

LESSON F Part 1 – How to Read Option Prices

LESSON F Part 1 - How to Read Option Prices Reading option prices takes a bit of getting used to, but even beginners find that it doesn’t take long to catch on to what they are seeing. Without being able to read option prices accurately, option traders might not...
LESSON D – Put Options: a chance to sell short

LESSON D – Put Options: a chance to sell short

LESSON D - Put Options: a chance to sell short When a trader buys a put option contract, they buy the chance to create a short-sale of a stock at the strike price. Selling short allows a trader to profit when stocks go down. A put option contract gives a trader the...
LESSON C – Call Options: A Chance to Own Stock

LESSON C – Call Options: A Chance to Own Stock

LESSON C - Call Options: A Chance to Own Stock When a trader buys a call option contract, they buy the chance to own shares they bought at the strike price on or before the expiration date. The contract gives them the right to take that chance if they want, or to let...
LESSON B – How Option Prices Change

LESSON B – How Option Prices Change

LESSON B - How Option Prices Change When the stock market is open, the value of an option contract can change continuously. The way the value changes is important to understand, because option prices move differently from stock prices. Stocks have one single factor...