Could someone explain, in English, which are stock options?
I have no experience in the stock market and want to know exactly what options are and how to trade with them. Give me an example of dissemination / Straddle / strangle or individual order. I have no idea what they mean. Each site try to find is so full of jargon, I have no idea what they are talking about.
<< >> For one, simple English good explanation of the options suggested you go and take http://www.cboe.com/LearnCenter/Tutorials.aspx Options Summary "free tutorial. That will do a much better job of explaining what is an option and some of the basic terms used when the options for discussion. Until we understand these terms is almost impossible to follow any discussion about the options, including the response I'm about to give the rest of your question. << >> One difference is a combination of "a long market position and compensation position in the market short, "according to the glossary in the book" The volatility and option prices "by Sheldon Natenberg. (Other people have different definitions slightly.) A long "position in the market" is something that you bought. For example, you could buy an option of $ 50.00 January 1 call to action XYZ. A market position "short" is something that is sold though you did not own it. For example, you could sell a call option in January 55.00 $ In shares of XYZ. There are two positions to compensate if one of them is expected to increase in value if the stock price rises and the other is expected to increase in value if the low share price. An example of a differential would be to buy an option to purchase $ 50.00 in January of XYZ stock and sell a call option on XYZ $ 55.00 in January values. A straddle is a combination of a call option and a put option, where both options have the same underlying strike price and expiration date. If both are of the optons purchansed astride called "long", and if the options are sold is called a straddle "short." An example of a combination option would be to buy an option to call $ 50 in January and buy shares of XYZ 50 January 1 option on XYZ shares $. strangle a "" is the same as a combination of options, unless the call and put options have different strike prices. An example of strangling a call would be to buy $ 50 January XYZ stock option and purchase an option to sell January $ 40 in shares of XYZ. A "solo" simply means a unique position as a option in January 1950 $ in shares of XYZ. An "Order" is an order that gives your brokerage to make an exchange in your account. In order what you want wpecify trade, if you want to buy or sell, how many want to change, and any classification are putting in the order, such as the maximum price paid or the amount of time to leave the car in place before you cancel if not full. An example of a single "order" would be "January 4 $ 50 Purchase options purchase of the shares of XYZ at $ 0.50 per share or less, and cancel the order if not filled at the end of the day. "In a multiple" order "(usually order is called a "spread" or a combo of "order") give a single price for multiple trades. An example of a spread order involves "Buy in January $ 50 call options on XYZ stock sells 4 dólares January 4, 1955 calls for a net debit of $ 0.25 per share or less, and cancel the order if not filled at the end of the day. "An example of an order of joint would be" January 4 $ 50 Buy call options on XYZ stock and buy dólares January 4, 1950 makes a net debit of $ 5.50 per share or less, and cancel the order if not full at the end of the day. "An example of a order to strangle it "January 4 $ 50 Buy call options on shares of XYZ and buy dólares January 4, 1940 makes a net debit of $ 1.35 action or less, and cancel the order if not filled at the end of the day. "
