Stock Options Basics

Posted by: Wesley Nolan on February 19, 2023 Under: Millionaire Stock Traders

Stock Options Basics A stock option gives the right but not an obligation to trade a specific number of shares (typically 100 shares per option contract) of the company’s underlying stock at a pre-set price and date. Options contracts are derivatives because their value is derived from the underlying stock’s price. Unlike regular stocks, options are traded as contracts and each stock options contract guarantees the option holder (contract buyer or seller) one...