wrote an interesting post today on
Here’s a quick excerpt
Options are called derivatives for a reason. In order to exists, options need to be based over a security, and this security can be, for the sake of our discussion, stocks, or future contracts. The main objective of options is to give the buyer the right to buy, or sell the underlying instrument for a given period of time. For traders, this opens up a wide variety of opportunities, going from hedging positions, all the way to full speculation. Understanding the risks, will give the trader the

Read the rest of this great post here