What is Stock Option Trading?
Stock option trading is very similar to trading stocks but the difference is that what you are buying isn’t the stock itself but contracts to give you the right to buy or exercise those stocks. It is a way to leverage your money. Instead of putting down thousands of dollars to control a few shares of stocks, stock options allow you to put down a fraction of that and control a lot more shares of stocks. One you have the stock option, you can then either use it to buy the stocks at the agreed upon price (the strike price) or simply sell the contract to other people. You can see 100% gains in a matter of weeks or even days using this strategy but this strategy is very risky.
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