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Difference bet. Stocks & Stock Options
#1
Mga boss

I have been doing a lot of reading and i stumble upon this topic.
STOCKS OPTION
medyo nalalabuan po ako.

Ang pagkakaintindi ko, ito po ay "rights" lang to sell the Stocks but not totally your stocks
bale lumalabas po na you are just buy and selling stocks but not owning it?

please enlighten me about this.

Smile

STARTING INVESTING FOR MY FUTURE...
"The greatest risk of all... is not taking at all"
Slowly but surely... time will come ill be appreciated... -Stocks in Cost averaging

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#2
Options are financial instruments/derivatives which are complicated (just a warning hehe). The most basic would be "call" and "put" options.

Stock options means that the underlying asset is a stock. There are other kinds of options such as commodity, interest rate, etc.

Call option - gives you the right to BUY an asset at a certain ("strike") price.
Put option - gives you the right to SELL an asset at a certain ("strike") price.

Options are mainly used for hedging positions (i.e. companies use this). Since it also has a secondary market (it has its own market, pero dito sa Pinas wala), it can also be traded on its own just like stocks. Of course, these options have their own corresponding prices.
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#3
(11-03-2011, 11:54 PM)scion_cho Wrote: Options are financial instruments/derivatives which are complicated (just a warning hehe). The most basic would be "call" and "put" options.

Stock options means that the underlying asset is a stock. There are other kinds of options such as commodity, interest rate, etc.

Call option - gives you the right to BUY an asset at a certain ("strike") price.
Put option - gives you the right to SELL an asset at a certain ("strike") price.

Options are mainly used for hedging positions (i.e. companies use this). Since it also has a secondary market (it has its own market, pero dito sa Pinas wala), it can also be traded on its own just like stocks. Of course, these options have their own corresponding prices.

Thanks Boss Scion_cho

mentor talga kita hehehe

kahit medyo nagnosebleed ako nagets ko namn
so i dont have to worry about this.

i also reading about swing trading Smile

STARTING INVESTING FOR MY FUTURE...
"The greatest risk of all... is not taking at all"
Slowly but surely... time will come ill be appreciated... -Stocks in Cost averaging

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