Understanding Options
byMichael Sincere
A great and very approachable introduction to options with details and various examples to help the concepts stick. An option is a contract of stocks (100), which gives the owner the right buy ( a call), or sell ( a put) but the not obligation to do either for the particular assets by a set date, the expiration date. This allows an investor a wider range of options to protect their assets or to make money through speculation or shorting a stock.
Motivations to Read
As I was learning about stocks, I heard about other securities like options and found out that they could be used to ensure your investments against downturns. This is called a Hedge, " an investment to reduce the risk of adverse price movements in an asset." I picked up this book around the time of the financial collapse as I was building my knowledge around the financial markets and wanted to be sure I learned as much as I could to protect future investments.
3 Reasons to Read
- An easy to understand introduction to options
- Low-risk option trading strategies
- Diversify your investment strategy and hedge your trades
Understanding Options Notes & Summary
