There are so many available options and ways to trade them that you might not know where to begin. Getting started is easier than you think, once you determine your goals.
An option is a contract to buy or sell a specific financial product. This product is known as the option’s underlying instrument or underlying interest.
Most strategies used by options investors have limited risk but also limited profit potential.
The key components of theoretical option pricing help investors anticipate price movements and understand price relationships between options.
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Content licensed from the Options Industry Council is intended to educate investors about U.S. exchange-listed options issued by The Options Clearing Corporation, and shall not be construed as furnishing investment advice or being a recommendation, solicitation or offer to buy or sell ant option or any other security. Options involve risk and are not suitable for all investors.