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Stock options

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NSE's stock options trade fails to mirror revival
The Economic Times  Nov 5  Comment 
The revival in retail investor participation in the stock market of late, amid the broad-based rebound in shares, has done little to boost trading in NSE’s stock options segment.
To Win with Stock Options, Someone Has to Lose
Michael James on Money  Oct 25  Comment 
This is a Sunday feature looking back at selected articles from the early days of this blog before readership had ramped up. Enjoy. Not to be too philosophical, but my experience has taught me that I’m best off to conduct myself as though...
HKEx To Provide More Choices In Its Most Actively Traded Stock Options
Mondo Visione  Oct 22  Comment 
Hong Kong Exchanges and Clearing Limited (HKEx) announced today (Thursday) that the Securities and Futures Commission has approved the proposed rule amendments for the narrowing of strike intervals in HKEx's stock options market.  The changes...
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Contents

more ▼WIKI ANALYSIS
This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition.
 
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Jason Ng

Stock Options - Definition

Options contracts with stocks as the underlying asset. Options contracts are securities that grants the buyer the power but not the obligation to buy or sell the underlying asset at an agreed price.

Stock Options - Types

There are 2 types of stock options; Call Options and Put Options. Call options allows the buyer of the option to buy the stocks from the seller at the agreed price anytime before expiration and Put options allows the buyer of the option to sell the stocks to the seller of the option at the agreed price anytime before expiration.

Stock Options - Laymen Terms

When you buy or own a stock option, you own the rights to make the seller of the option perform the contract whenever you want to, only when you want to. Hence the term "no obligation". When you buy a call option, you can demand the seller to sell you the stocks at the agreed price even if the stock is actually at a much higher price. When you buy a put option, you can demand the seller to buy your stocks at the agreed price even if the stock is much lower.


--Jasonnoguchi 20:16, September 10, 2008 (PDT)

See Also

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