Following up from the “what is a call option” article we turn to what is a put option. This one should be even shorter, because if you have read the “what is an option” and the bit on calls you should have a thorough understanding of options at their basic level. One thing that I…
What is a Call Option? – Beginner Series
Following up on the epic saga that was “what is an option” I present something more narrowly focused with put options forming the next article’s topic. The prior article mentioned what a call option is in pretty specific detail, but I thought I would go over it in a vacuum for the sake of sanity….
What is an Option? – Beginner Series
I tend to trade options pretty heavily in order to use leverage and not commit too much capital. Following up on my “what is a stock” article, I thought I would go over options again. I wrote an article explaining options before, but my writing style has evolved since then and so I thought I…
What is a stock? – Beginner Series
Welcome to the new beginner series that I decided to start after realizing there were a lot of people who were not aware of even the basics, such as the definition of a stock. You have to start somewhere. It seems fitting to start with the definition of a stock, because there is a subtlety…
Options 101 – What is an Option Premium?
An option premium is the value of an option contract. I wish that were the end of it, but understanding a premium is critical to understanding options. At its purest form premium only refers to that amount that rises above the innate value of something. Think about collectible pennies. The face value of a penny…
