Buying Options For Dummies | Popular › |

If the market price goes above your strike price, you can buy the stock at a "discount" or sell the contract for a profit.

Buying options gives you the , but not the obligation , to buy or sell a stock at a specific price within a set timeframe. It’s essentially a contract where you pay a fee (the premium ) to "reserve" a price (the strike price ) for a set period (until the expiration date ). The Two Core Types of Options buying options for dummies

They give you the right to 100 shares at the strike price. If the market price goes above your strike

: You buy these when you think a stock price will fall . The Two Core Types of Options They give

If the market price drops below your strike price, the value of your put increases because you can sell the stock at a price higher than the current market rate. Essential Lingo Options Trading for Beginners (The ULTIMATE In-Depth Guide)

They give you the right to 100 shares at the strike price.

: You buy these when you think a stock price will rise .