Getting an Options Education On-Line

    Getting An Options Education On Line Splash image

    An option is a contract that gives the holder the right, but not the obligation, to buy or sell an underlying financial product for a specific price within a specific time period.

    In the good old days, options primarily covered equities—in other words, the underlying instrument was a stock. But the option universe has expanded immensely. Options now exist for a wide variety of underlying instruments, including options on exchange-traded funds (ETFs), numerous indexes (broad-based, sector and international), currencies and even interest rates.

    Longer-term options have been introduced in the form of Long-term Equity AnticiPation Securities (LEAPS). And one of the latest wrinkles are FLEX options, which allow you to specify characteristics such as the expiration date, strike price, and exercise-style of the contract.

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