commodity option trading system wrote an interesting post today on
Here’s a quick excerpt
A stock option is defined as a right to buy or sell a stock at a stated price within a specified time. Buyers of stock options are called holders and those who sell options are writers. “Call” suggests an option contract giving the owner the right but not the obligation to buy a specified amount of an underlying security at a specified price within a specified time. “Put” refers to an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying

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