A call option is a tradable security that gives the buyer of the call option the right to buy stock at a certain price "strike price" on or before a certain date "expiration date". Likewise, the seller of a call option is obligated to sell stock at a certain price by a certain date if the buyer chooses to exercise his right.

The buyer and seller agree in advance on 1 the stock involved called the "underlying security" or "underlying" , 2 the duration of the option "expiration date" , 3 the exercise price "strike price" , and 4 the price of the option. Like stocks, there are many investors buying and selling options every day and each has a bid and ask price quoted by the exchanges.

A put option is the opposite of a call option: Born To Sell is not concerned with put options and will focus this tutorial on call options and covered calls. Login Free Trial Free Newsletter. Home Portfolio Search Features Tutorial Blog Reviews Free Trial.

Put Options Tutorial - pezewehemave.web.fc2.com

Tutorial Welcome Covered Call Writing Long vs. Short Call Option Covered Call Definition Options Explained Option Exercise Covered Call Example CC vs. Call Option There are two kinds of stock options: About Contact Press Affiliates Privacy Terms Site Map.