Trading Options 101: A Beginner’s Guide

| February 17, 2022

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“What is an option?” This may be a question you’ve asked yourself before. If so, options trading might be a suitable investment for you!

An options contract offers the buyer the opportunity to buy or sell the underlying asset depending on the type of contract they hold. Unlike futures, the holder is not required to purchase or sell the asset if they decide against it and make sure not to have “auto assign” turned on at expiration, or you risk automatically being assigned shares under the right circumstance. Check with your broker for specific details on this. Each contract will have a particular expiration date by which the holder must exercise their option.

Keep reading about options trading basics here.

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