Wednesday, February 22nd, 2012

What are Call Options?

What are call options? In stock trading these are contracts giving the buyer the right to purchase 100 shares of stock per contract. The trader pays a premium to purchase the options contract. He then has the right to buy stock but is under no obligation to do so. The trader will analyze the fundamentals [...]

How Do Call Options Work on General Motors?

How do call options work on General Motors? After the successful initial public offering of General Motors stock the revitalized company’s stock is also listed on options exchanges. The stock has been trading in and around the $34 range and many do not expect to see a rapid increase in share price. Thus, some options [...]