- Stock Market

 

 Nasdaq in a month?

Up more than 5% 
Stay the Same 
Down more than 5% 
I don`t know 

 

 
Stock Market Trading:
Options Tips



  • Options give you the right to buy or sell a security.

  • When you buy an option, the most you can lose is the amount you pay for the option.

  • Each option corresponds to 100 shares of underlying security.

  • When you buy an option, it is a cash purchase, there is no margin requirement.

  • The maximum profit when you write an option is the amount of the premium received.

  •  An option loses its time value the fastest during the last 30 days before expiration.

  • More than 80 percent of options expire worthless.

  • The lower the underlying futures volatility, the lower the option premiums.

  • The higher the underlying futures volatility, the higher the option premiums.

  • Options are less liquid than the underlying futures.


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