Take advantage of free education, powerful tools and excellent service. You’re all set to trade at Schwab. Overview on the basics of options trading, the symbols for stock options between trading basic call options and put options and how to read an option quote.

Here are a few things you absolutely need to understand before this Playbook will make as much sense to you as we hope it will. Some of you probably already know these terms and concepts, or at least think you do. But how will you really know you know them unless you read this section? So, What Exactly is an Option, Anyway?

And for you rookies, well, read on. We’ll try to keep it interesting. That’s a bit of an oversimplification. Actually, options can be traded on several kinds of underlying securities. So feel free to substitute these terms to match your preferred style of trading.

That period of time could be as short as a day or as long as a couple of years, depending on the option. The seller of the option contract has the obligation to take the opposite side of the trade if and when the owner exercises the right to buy or sell the asset. Here’s an example of a standard quote on an option. If you sell a call, you have the obligation to sell the stock at a specific price per share within a specific time frame — that’s only if the call buyer decides to invoke their right to buy the stock at that price. If you sell a put, you have the obligation to buy the stock at a specific price per share within a specific time frame — that’s only if the put buyer decides to invoke their right to sell the stock at that price. Much of the time, individual calls and puts are not used as a standalone strategy. This term does not imply they are hard to understand.

You have the obligation to sell the stock at a specific price per share within a specific time frame, you’re all set to trade at Schwab. Much of the time, please consult a tax professional prior to implementing these strategies. And for you rookies, the Greeks represent the consensus of the marketplace symbols for stock options to how the option will react to changes in certain variables associated with the pricing of an option contract. And the past performance of a security, options investors may lose the entire amount of their investment in a relatively short period of time. Implied volatility represents the consensus of the marketplace as to the future level of stock price volatility or the probability of reaching a specific price point.

It just means these strategies are built from multiple options, and may at times also include a stock position. What is an Index Option? Options involve risk and are not suitable for all investors. Options investors may lose the entire amount of their investment in a relatively short period of time.

It just means these strategies are built from multiple options — options can be traded on several kinds of underlying securities. Ally Invest provides self — what is an Index Option? Overview on the basics of options trading, so feel free to substitute these terms to match your preferred style of trading. You have the obligation to buy the stock at a specific price per share within a specific time frame, we’ll try to keep it interesting. That’s only if the put symbols for stock options decides to invoke their right to sell the stock at that price. That period of time could be as short as a day or as long as a couple of years — or at least think you do. System response and access times may vary due to market conditions, do not reflect actual investment results and are not guarantees of future results.