A Guide To Options Trading
Dec 16th, 2008 | By Alexander Green | Category: Financial NewsReaders often ask me the truth about options and the advisability of buying puts and calls on stocks.
Let me begin by saying that options are tools, nothing more. Tools can be used to build something. Or they can be used to tear something down.
The key is to understand and master your tools and, more importantly, not destroy wealth when your intention is to create it.
Let’s start by defining our terms…
The Difference Between Put & Call Options?
Here are the differences between put and call options:
- A put option gives the owner the option of selling a stock at a specific price, again known as the strike price, over a given period of time.
- A call option gives its owner the option to…