Archive for the 'Options 101' category

Option Basics – Part 1

Date Wednesday, May 14th, 2008

What is an option exactly?

An option is a contract that grants the right but not the obligation to buy or sell an asset at a fixed price before a predetermined date. What this means is, you as the holder of the option contract is granted the choice of whether or not to execute the contract before the expiration date to buy or sell the underlying asset. Read the rest of this entry »