An options contract is a derivative security, meaning it derives its value from the another security. The writers, or sellers, of an options contract make a premium on the sale, which is how they make money. The buyers of an options contract will have the option of taking some sort of action in the future if specific conditions become true – such as the price of security hitting a specific price.
Put options and call options are the most common types of options contracts. Investors can be on either side of put options and call options – either buying them, or writing (or selling) them.
Derivatives are usually a tool of more educated investors, but by becoming a FlashCourse user, you can begin the process of becoming a financial wizard yourself. Get the free FlashCourse app for iOS and Android to learn more.
Single Option Fever
Chapters In This Course Include…
- Features of Calls
- More on Calls
- Features of Puts
- Basic Definitions
Achieve Financial Mastery with Bite-Sized, Animated Courses
Learning about finance with FlashCourse is fun and addictive. Complete courses on any topic in as little as 5 minutes. Hit milestones to level up and earn badges.
Dozens of Fun, Animated Lessons
A single sentence on each flash card, and a handful of cards before each quiz.
Clear and Accurate
Lessons and insight from the top minds in the industry, rewritten for simplicity and clarity.
Every Topic, Simplified
Stocks, bonds, cryptocurrency, futures, taxes, retirement planning and everything in between.
Starting from Scratch?
We can start you from the absolute basics and build you into a total financial wizard.
Learn Anytime, Anywhere
Learn about money and investing on your breaks, commutes and downtime with our iPhone and Android apps. Download today and start learning free in 60 seconds.
FlashCourse for Schools
The world’s hottest new financial education app is now available for the classroom. Click the button below to see how it works, and to kick it off in your classroom today – free!