Options Trading – 5 Interesting Facts About Stock Options

When people refer to options trading, they may actually refer to a number of different securities. (19459003)

Here are five interesting facts about options trading: Most trader has never been a trader in the stock market. Realize:

Fact 1: Most people never know who actually creates stock options. After many years of trading, I found that OCC issued all listed options on CBOE and other US options exchanges.

The OCC ensured that the option market remained mobile, always the buyer and seller of each transaction.

Fact 2: Sometimes, not another option trader buys or sells your stock options from / to you. Market Makers are members of the Exchange and help maintain market liquidity by using their own money to buy and sell options.

Therefore, when there is no open order, market makers enter and own

Fact 3: Price Options are quoted for their price per share, but they are actually only 100 lots sold. So, that means, no matter how much you see the price is 100, to get the true cost of this option

Do not know how stock options work people may see a $ 2 offer,

Fact 4: Stock options do not expire on the third Friday of their month because their stock options expire. Fact # 5: Actually, they are in a month's time when you buy stock options and you are not buying ownership, like you are stock.

If you are a call option, you are buying a "right" to buy a stock, and you choose to buy your "