Stocks Options Summary

For those that are interested in buying shares of stock can do this by buying the stock straight up or paying out of their own pockets right now. Another thing that can be done is that one is able to sell some put options at a strike price under the actual price of the stock and cross your fingers to see what occurs. when expiration occurs, you will either be given the shares of stock and will need to pay for them right away, or the option will be left and expire as worthless, meaning you will lose your stock. No matter what the case in these two alternatives, you are able to hold onto the premium that the buyer pays out to you at the start of the transaction. In the event a person was not assigned, then they could simply repeat the whole process again the following month. What this strategy does is let you win both ways. The person is able to purchase the stock at a discount or is able to keep the money for the time and work they put into it. Not a bad deal. Keep in mind that there is not any guarantee with any strategy in the sense that one will effectively be able to purchase the stock at a lower price. This will only occur in cases in which the stock goes down, however this is only possible if the stock goes under the strike price by the expiration date. Nonetheless, this should not be a problem as you will have most likely set your buy levels at a prearranged point. If it does not get there, there is no problem. At least you are sure you are taking a practical step with the money you have and are using it. It is not a good idea to just let your money sit and not do anything with it, we should be thinking of ways in which we can make it increase. It makes sense when you think that you can get money right now in your account while you are waiting to see if you are going to be able to purchase that stock at a cheaper price later on. This certainly has to be a method or strategy that anybody can learn about in just a little bit of time and without a lot of effort. Don’t get us wrong though, this does not mean that you are going to be able to learn how to trade options from one day to the next, this is definitely something that needs to be studied and researched on, just as is the case with any skill that needs to be mastered. It is a thing that can be practiced and learned about though without the need of going to a special school; people can even learn this in their own homes. The main thing to focus on though is which stock you are fond of and which put options you are interested in selling.