The definition of an option is takes a little bit of explaining, but it is not a very difficult concept. The question “What is an option?” can be answered with the following brief explanation. An option is a contractual agreement that provides a person or organization with the right to purchase something in the future. This use of the word option applies to the financial industry, and, most specifically, to the purchase and sale of stocks. A single option has what is called a one-to-many relationship with shares of stock. In other words, one option represents multiple shares of stock. The usual number of shares in one option is equal to one hundred. Both the purchaser and seller benefit from buying and selling options. The purchaser is guaranteed the ability to buy the stock at an agreed upon price. This is called the strike price. At the same time, the seller earns money from the sale of the option. The website http://www.keeneonthemarket.com/blog/2175-what-is-an-option is a great beginner’s guide to learning more about stock options..
Now that the question “What is an option?” has been answered, let’s move on. Chances are you are interested in making money in the stock market. Your specific curiosity about options indicates that you are interested in pursuing the buying and selling of stock options as a way to generate or enhance your income. Congratulations! You are embarking on something that is challenging, exciting, personally fulfilling, and fiscally rewarding. That’s the good part. Here’s the negative: there are people losing money making stock trades over the internet. In fact, more amateur traders lose money (sometimes a lot) than make money. This statement isn’t meant to scare anyone off. It simply means that potential buyers and sellers need to be educated. That education starts here, at http://www.keeneonthemarket.com/blog/2175-what-is_an-option.
This website has various ways to give potential options traders the education they need to be successful in this venue of stock exchange. There is the option of one to one publishing; there is the option of video training; there are also an assortment of blog posts, and even a boot camp training program. Each of these is an excellent way to invest in developing the schooling one needs to be a profitable trader. The one on one option is a live session at the site’s Chicago office. The student can choose between basic training, intermediate training, or advanced training. Each is extremely valuable and well worth the investment and time. If location is an issue, this training is also offered over the web. The web training is live, so that students may interact with and ask questions of the instructor.
While the live training is most highly recommended, there is also the option of watching the video series offered on the website. There is a ton of great information in these videos, as well as quizzes to help students track their own progress.
Andrew Keene has developed a great website for those new to the options trading game, so that they are educated and ready to get started. Visit the website. Get some training. Then, go and make a lot of money!