Buying Options For Dummies Now

: You buy these when you think a stock price will rise .

Buying options gives you the , but not the obligation , to buy or sell a stock at a specific price within a set timeframe. It’s essentially a contract where you pay a fee (the premium ) to "reserve" a price (the strike price ) for a set period (until the expiration date ). The Two Core Types of Options buying options for dummies

If the market price goes above your strike price, you can buy the stock at a "discount" or sell the contract for a profit. : You buy these when you think a stock price will rise

They give you the right to 100 shares at the strike price. but not the obligation