Online Options Trading
Trade options $0.50 per contract on the platform named, "Best for Options Traders".*
Why Do Investors Trade Options?
Options give buyers the right (but not the obligation) to buy or sell an asset at a specific price on or before a stated date. They are a versatile investment class that can help traders diversify their portfolios. Options can be speculative or conservative and can fit all types of portfolios.
How Are Options Used?
Options are used for three main reasons: Leverage, generating income, and protection.
Options offer investors the opportunity to profit from upward, downward or sideways
moving markets. Options also may provide leverage to the investor; that is, the ability to control a certain number of shares of a stock without actually buying the stock. Unlike a stock, though, an option is a time limited security that exists only until a pre-specified expiration date.
Many investors don't realize that options may also be used to protect existing stock positions.
For example, if an investor holds a certain stock that has an upcoming earnings announcement, the investor can use options to protect the stock position for a period of time in which the earnings announcement occurs. To get this protection, the investor will have to outlay a certain amount of cash for the options position. Options can also be used to generate income.
This is accomplished by selling options.