Understanding Equity Options - Options Clearing Corporation

More video on topic «Options equity trading»

6 - On their expiration day, weekly and EOM options will be automatically exercised if the options are determined to be in-the-money using a volume-weighted average fixing price calculated by the exchange at 8:55 . Central Time (CT). This special fixing price is calculated and disseminated by CME daily under the symbol ESF.

Options Trading at optionsXpress

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Stock Options Analysis and Trading Tools on I

Options are financial instruments that can be used effectively under almost every market condition and for almost every investment goal. Among a few of the many ways, options can help you:

Our unique strategy offers alerts and trade ideas four times per month, specializing in weekly options. The primary objective is positive returns on a consistent basis.  Short-term investment ideas targeting double-digit results, best in the industry for weekly options. A great majority of the newsletter trade ideas are indeed profitable. Weekly options profit on a consistent basis. However, there will be losses.  Ups & downs are inevitable. However, at the end of the day, these portfolios will more than likely show excellent bottom line results.

  • Opportunity to speculate using the power of leverage. This allows for strong potential returns, but can also result in significant losses.
  • Hedge your position with potential to lock in a profit in the underlying security, or to help minimize potential downside risk.

Want to learn more? Discover more about options trading .

Use the Platform from the Broker Named Among the "Best for Options Traders" by Barron's in their 7567 Online Broker Ranking

Unlike other investments where the risks may have no boundaries, options trading offers a defined risk to buyers. An option buyer absolutely cannot lose more than the price of the option, the premium. Because the right to buy or sell the underlying security at a specific price expires on a given date, the option will expire worthless if the conditions for profitable exercise or sale of the option contract are not met by the expiration date. An uncovered option seller (sometimes referred to as the uncovered writer of an option), on the other hand, may face unlimited risk.

This options trading guide provides an overview of characteristics of equity options and how these investments work in the following segments:

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ASX has a wide range of resources to get you started from introductory videos to online courses, regular seminars to industry news, plus you have opportunity to test your options smarts against others in an options trading game.

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