Stocks Table
How to read the string table option and buy shares?
Options Chains are easy to read. They fall into place (short side) and demand (Long). They are subdivided into exercise price, and classified according to the date of expiry. They have an offer (bid price) and ask (the amount the seller wants) as an action does. Suppose you want to see what Apple's stock options costs. (I do all the numbers.) Say what Research in December 2008 calls, because Apple is trading at 172.00 dollars, and you think it can go up to $ 180.00 per share in December. You look at the call 180. It is the lack of money. Let's say it costs 8.80 dollars. This means that a 180 call in December will cost Apple $ 880.00 to a control option, which controls 100 shares. If you're in the money in December, you can sell your call to close your position (eg $ 1,600.00 worth at maturity) or you can take delivery of 100 shares of Apple – but it should be money in your account to pay for 100 shares. That's how it works. You can do a horse and runs, but are more complicated. You must be educated before any trade. Start to read. Go to the library, is free. Also, talk with an agent such as Schwab or TD Ameritrade and open an account. There are many excellent educational products online through a reputable broker, and most of them are free, too. Good luck. Hope this explanation helped you understand the chain of options a bit better.
Stock Market and Dollar Collapse (Part 1 of 3)