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  2. What is options trading? A basic overview - AOL

    www.aol.com/finance/options-trading-basic...

    Here are the major terms to know when trading options: Underlying stock: ... the appeal for options traders is that they can make a lot more in percentage terms than they can by buying the stock ...

  3. Option (finance) - Wikipedia

    en.wikipedia.org/wiki/Option_(finance)

    t. e. In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of ...

  4. Options strategy - Wikipedia

    en.wikipedia.org/wiki/Options_strategy

    The trader may also forecast how high the stock price may go and the time frame in which the rally may occur in order to select the optimum trading strategy for buying a bullish option. The most bullish of options trading strategies, used by most options traders, is simply buying a call option. The market is always moving.

  5. 5 options trading strategies for beginners - AOL

    www.aol.com/finance/5-options-trading-strategies...

    1. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The ...

  6. Options Trading: A Beginners Guide - AOL

    www.aol.com/options-trading-beginners-guide...

    Options Trading Explained. Options are tradeable contracts that let investors bet on the future performance of individual securities or the stock market as a whole. They give the purchaser the ...

  7. Glossary of stock market terms - Wikipedia

    en.wikipedia.org/wiki/Glossary_of_stock_market_terms

    Widow-and-orphan stock: a stock that reliably provides a regular dividend while also yielding a slow but steady rise in market value over the long term. [13] Witching hour: the last hour of stock trading between 3 pm (when the bond market closes) and 4 pm EST (when the stock market closes), which can be characterized by higher-than-average ...

  8. 7 mistakes to avoid when trading options - AOL

    www.aol.com/finance/7-mistakes-avoid-trading...

    2. Lack of diversification. One of the most common problems when trading options is a lack of diversification. When buying equities, diversification usually means purchasing stock in many ...

  9. Put option - Wikipedia

    en.wikipedia.org/wiki/Put_option

    Put option. In finance, a put or put option is a derivative instrument in financial markets that gives the holder (i.e. the purchaser of the put option) the right to sell an asset (the underlying ), at a specified price (the strike ), by (or on) a specified date (the expiry or maturity) to the writer (i.e. seller) of the put.

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