The Basics of Trading Options Contracts

Option for dummies what is it. Step 1: Educate Yourself About Options.


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    Everything you need is here in this easy to understand tutorial. Read the first few pages and you should get a good understanding of how options trading works.

    Even dummies can understand it! Let's look at some put and call option basics: One option contract controls shares of stock.

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    Likewise, if you own less than shares of stock you can't create a covered call position from it. Options have 3 characteristics to classify them: the stock they are written for the expiration date the exercise, or strike, price Monthly options expire on the Saturday after the 3rd Option for dummies what is it of their expiration month.

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    That's just the way the CBOE set it up. The last day they are available for trading is the day before they expire i.

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    By the way, books like Options Trading For Dummies aren't bad if you want something to read when you're not online No need to remember all this; we'll show you all of the available choices in our tables; that's just the kind of top-notch firm we are. There are tens of thousands of call options available with different combinations of stock, month, and strike price, but for some stocks, some months, and some strike prices, there are no options available.

    If you want enough basics to begin trading put options and call options, this options trading for dummies Course is a good start.

    Another way to have options trading for dummies explained when you're done with this tutorial is to read through our covered call blog.