There are two forms of options: the call option and the put option. If you buy a call option, you are expecting your stock price to go up and you would prefer the put option if you expect the opposite, meaning you expect prices of your stock to decline.
The good thing about options is that because they are exercised at a specific time frame and its rates are based on a set price, the risks that you stand to face are controlled and limited.
Read further about "What Options Trading Is"
Monday, November 3, 2008
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