Free Stock Options Tips

Free Stock Options Tips

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A privilege, sold by one party to another, that gives the buyer the right, but not the obligation,
 to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

In the U.K., it is known as a "share option".

American options can be exercised anytime between the date of purchase and the expiration date.
European options may only be redeemed at the expiration date. Most exchange-traded stock options are American.

Option that gives its holder the right to buy or sell a firm's common stock (ordinary shares)
at a specified price and by a specified date. Stock options are customarily a part of executive
compensation package.Options trading based on stock indices of various markets or industry groups
without having to buy individual stocks. For example, if technology stocks are seen to be heading
for a fall, an investor could buy a put option on a technology index instead of short selling
(see short sale) the stocks of several technology firms.

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