How To Get Started Trading Options 14 Steps With Pictures
However, options can also be used as a strategy for protecting your investments. For example, you could purchase a put option to sell your shares of a stock if you are worried that the price might drop suddenly. This method of using options is somewhat safe, as you only stand to lose the contract price. [2] X Research source A “call” is the option or right, but not the obligation, to buy an asset at a certain price within a specific period of time....