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.

    ...To continue reading this article you must be registered with AAII.

    Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
    JOIN TODAY for just $29.
    Register for FREE
    to read this article and receive access to future AAII.com articles.

    Log in
    Already registered with AAII? Login to read the rest of this article.