Unlike stocks, trading options requires a specific approval process from your broker due to the higher risks involved.
: This is the price you pay to purchase the option. It is quoted per share, so a $2.00 premium actually costs $200 per contract (100 shares x $2.00). how to buy options in stock market
: You buy these if you expect the stock price to fall . They grant the right to sell the stock. Unlike stocks, trading options requires a specific approval
: The fixed price at which the option allows you to buy or sell the stock. how to buy options in stock market