Options — Buying And Selling Stock

Buying and selling stock options is a versatile way to trade market movements with and defined risk . Unlike owning a stock outright, an option is a contract that gives you the right , but not the obligation , to buy or sell a stock at a specific price ( strike price ) by a certain date ( expiration ). The Core Contract Types

You expect the price to stay flat or rise . You are obligated to buy the shares if the buyer exercises their right. Buy vs. Sell Dynamics What are call and put options? - Vanguard buying and selling stock options

There are two primary types of options, which function differently depending on whether you are the buyer or the seller: Buying and selling stock options is a versatile