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What Are Stock Options?
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What Are Stock Options?
Brought to you by free etf trends . Stock options are contracts to buy (or sell) a stock at a certain price before a certain time in the future. Buyers of options have the right to buy the stock at the specified price, but they are not obligated to exercise their option. Sellers of options have the obligation to sell the underlying stock if the buyer of the option wishes to exercise it. A contract to buy is called a ‘call option’. The buyer of a call option hopes the price of the underlyi
Trading in Wall Street’s graveyard
Did you know that Washington Mutual’s stock gained 64% earlier this week? Lehman Brothers shares have quadrupled the past month. The stock of the old, bankrupt GM has tripled. You see anything wrong with this picture? Apparently, the latest craze in the stock game is to buy shares of dead companies. Blue-penny stocks, they’re called. They rarely trade above a $1, but high-volume traders and day traders can make a quick buck with the sudden price swings. But Lehman, Wamu
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