Section 11 Tutorial

К оглавлению1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 
51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 
102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 
119 120 121 122 123 124 125 126 127 128 

 

What is the option game? It’s an investment strategy that involves

paying for the right to buy or sell stock or futures at a particular

price over a given time, or selling the right to someone

else to buy or sell stock or futures for a particular price over a

given time. Simple? Actually, yes.

However, there is a bit of pretending going on. Most of the

investors only pretend to want to buy or sell the stock they control.

What they are really doing in this game is betting a particular

stock or futures price will go up or go down.

That bet is called an option, and the casino palaces are options

exchanges, the first constructed in the early 1970’s. You

can play the part of the tourist or the casino owner. Want to play?

Before you can learn the tricks of the trade, you have to

know the game, and that is what this section is all about, teaching

you the basics of option trading. (The good stuff comes later.)

Let’s begin.

Throughout the tutorial, we will use stocks to explain option

trading, but keep in mind that what applies to stock and stock

options applies to futures and futures options.

 

What is the option game? It’s an investment strategy that involves

paying for the right to buy or sell stock or futures at a particular

price over a given time, or selling the right to someone

else to buy or sell stock or futures for a particular price over a

given time. Simple? Actually, yes.

However, there is a bit of pretending going on. Most of the

investors only pretend to want to buy or sell the stock they control.

What they are really doing in this game is betting a particular

stock or futures price will go up or go down.

That bet is called an option, and the casino palaces are options

exchanges, the first constructed in the early 1970’s. You

can play the part of the tourist or the casino owner. Want to play?

Before you can learn the tricks of the trade, you have to

know the game, and that is what this section is all about, teaching

you the basics of option trading. (The good stuff comes later.)

Let’s begin.

Throughout the tutorial, we will use stocks to explain option

trading, but keep in mind that what applies to stock and stock

options applies to futures and futures options.