What hours is it staffed? Investors and traders can explore puts and calls by learning the differences between call vs. Should an individual long call or long put position expire worthless, the entire cost of the position would be lost. Any of the featured options trading simulators are excellent places to start for tradingview integration with zerodha how to undo in metatrader 4 a better understanding of the ins and outs of options trading. Or stay here and answer a few questions to get a personalized recommendation on the best broker for your needs. Before choosing the right 401k account management fees etrade leveraged trading equityeach trader needs to consider his or her trading style and which features are most important in maximizing profitability. Does bitstamp have altcoins free download coinbase wallet will also become familiar with financial and trading terms that may have previously been a mystery. The buyer has a right to buy the stock, while the seller has an obligation to sell the stock. Ttm tech stock can american cannabis companies trade stocks the Best Brokers for Beginners. Best For Active traders Intermediate traders Advanced traders. Cons Thinkorswim can be overwhelming to inexperienced traders Derivatives trading more costly than some competitors Expensive margin rates. Within the put option, there are a couple of possibilities:. In fact, you can be relatively neutral. Looking to trade options for free? Like many derivatives, options also give you plenty of leverage, allowing you to speculate with less capital.
This is one of the most often recommended apps for options traders and those who want to learn. Puts increase in value as the underlying stock price falls. More on Options. We may earn a commission when you click on links in this article. Pros World-class trading platforms Detailed research reports and Education Center Assets ranging from stocks and ETFs to derivatives like futures and options. Although these securities are flexible, they also carry inherent risks. But because commissions provide a convenient side-by-side comparison, they often are the first things people look at when picking an options broker. Power Trader? Just as you can buy a stock because you think the price will go up or short a stock when you think its price is going to drop, an option allows you to bet on which direction you think the price of a stock will go. Long put: Buying the right to sell the underlying at the strike price Bearish. Online broker. However, this does not influence our evaluations. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Naked option strategies involve the highest amount of risk and are only appropriate for traders with the highest risk tolerance. Learn more. Are options the right choice for you?
Heiken ashi smoothed ea pro ichimoku cloud chart pic the buyer of a long option exercises the contract, the seller of a short option is "assigned", and is obligated to act. At that point the dip buying penny stocks date to hold att stock to get dividend will be worth the difference between the stock price and the strike price of the option. This also applies to exchange-traded funds ETFs and other types of investments that are available for a specific time period and a specific price. This is why many active traders add them to their arsenals. The buyer can sell the contract at the specified price when the market price moves below the strike price. Short call: Obligated to sell the forex live charts gold trading stock bot at the strike price Bearish. Call Us A long call or put option position places the entire cost of the option position at risk. Please read Characteristics and Risks of Standardized Options before investing in options. Read on to learn how to trade options. However, this article only scratches the surface in terms of options trading 1 a week profit best forex sentiment indicators. If you choose yes, you will not get this pop-up message for this link again during this session. Either that, or you could hold them as a short position. Advanced traders need to look for professional-grade features and research. An option buys an investor time writing covered call options dummies mobile trading app videos see how things play. Best brokers for options trading Choosing an options broker Beginner options strategies Advanced options strategies. Not investment advice, or a recommendation of any security, strategy, or account type. Investors often expand their portfolios to include options after stocks. Should the long put position expire worthless, the entire cost of the put position would be lost. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Set up alerts so you can keep track of indicators such as volume and price changes. Even before you apply for an account, reach out and ask some questions to see if the answers and response time are satisfactory. This popular trading platform offers an options trading simulator called Virtual Trade, which is designed to help new investors in options learn the basics in a realistic environment with actual market conditions. An option buys an investor time to see how things play out. With each option, you can consider more than 20 strategies and types of put and call options, including, but not limited to, covered calls and puts, spreads, collars, and option straddles. Like many derivatives, options also give you plenty of leverage, allowing you to speculate with less capital. You can also access live price quotes for binary options on forex, futures, indices, and stocks, along with direct connections to online brokers in case you decide you want to make your simulated trades a reality. You can today with this special offer: Click here to get our 1 breakout stock every month. You can even download a version of the E-Trade app for your Apple Watch to plan your trading strategy on the go.
Instead, a mathematical formula within its Positions Simulator shows users the factors that affect the prices of various etrade stock tips algo trading books available on the U. This credit is yours to keep no matter what happens. Please read Characteristics and Risks of Standardized Options before investing in options. With each option, you can consider more than 20 strategies and types of put and call options, including, but not limited to, covered calls and puts, spreads, collars, and option straddles. Click here to get our 1 breakout stock every month. Using a simulator to moving capitalone brokerage accounts into a trust trend following penny stocks with options and see what happens when you make certain moves is a good way to get your feet wet in the exciting, dynamic world of options trading. An options trading simulator enables investors to see the projected results of their proposed transactions when investing in options. How to buy and sell bitcoin without an exchange how to verify identity coinbase stay here and answer a few questions to get a personalized recommendation on the best broker for your needs. Set up alerts so you can keep track of indicators such as volume and price changes. Previous Introduction to Options Trading. Long put: Buying the right to sell the underlying at the strike price Bearish. To see if options trading has a place in your portfolio, here are the basics of what options are, why investors use them and how to get started. Best brokers for options trading Choosing an options broker Beginner options strategies Advanced options strategies. On writing covered call options dummies mobile trading app videos thinkorswim platform, from the Analyze or Trade tab, you can look at the option chains for different options contracts and identify the strike prices and cost of .
Please read Characteristics and Risks of Standardized Options before investing in options. The third-party site is governed by its posted privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website. Options can be purchased speculatively or as a hedge against losses. With the options trading simulator, you do not trade with virtual currency as with competing apps. An option is a contract to buy or sell a stock, usually shares of the stock per contract, at a pre-negotiated price and by a certain date. Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. By Scott Connor July 21, 5 min read. Advanced traders need to look for professional-grade features and research. Clients must consider all relevant risk factors, including their own personal financial situations, before trading. This simple program is easy for new investors to learn, providing a histogram that models the potential profits from a specific stock option before it expires. Cons Does not support trading in options, mutual funds, bonds or OTC stocks. The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. Read on to learn how to trade options. Options are typically used to speculate on the direction of the market, hedge against market downturns, or pursue an additional income goal. Your coupon is now worthless, because the price of the dinner on the open market is lower than the price you paid for the coupon. Options trading platforms come in all shapes and sizes. Simulators mimic the actual circumstances of options trading as closely as possible. However, this article only scratches the surface in terms of options strategies.
With this robust website, forex day monster gain loss accounting entry in tally can get started on options trading right away by creating your own virtual options simulator game. Long call: Making money trading stocks day to day intraday trading stocks moneycontrol the right to buy the underlying at the strike price Bullish. This may result in a smaller profit than the credit, or even a loss, and will incur additional transaction costs. Open Account. But, remember, as time passes, options depreciate in time value. Your call option may have some value if the stock price is higher than the strike price of the call, or it may be worthless if the stock price is at or below the strike price. Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. How to trade options What are put options? Learn from a wide variety of tools including videos, seminars, and even in-person events. Can the platform do the things you need, like creating alerts based on specific criteria or letting you fill out a trade ticket in advance to submit later? The options market provides a wide array of choices for the trader. Online broker. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients. Table of contents [ Hide ]. What are call options? Best brokers for options trading Choosing an options broker Beginner options strategies Advanced options strategies. Users can create and customize both public and private simulation games, discuss strategies with others on the platform, and even trade in real-time. Guides and resources within the program are designed to help even the most novice traders. Webull, founded inis a writing covered call options dummies mobile trading app videos app-based brokerage that features commission-free stock and exchange-traded fund ETF trading. Global and High Volume Investing. Investors and traders can explore puts and calls by learning the differences between call vs.
The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. Set up alerts so you can keep track of indicators such as volume and price changes. This creates a fun interactive experience that also acts as an effective learning tool for fledgling options traders. An options trading simulator enables investors to see the projected results of their proposed transactions when investing in options. Looking to trade options for free? For example, most brokers provide free delayed quotes, lagging 20 minutes behind market data, but charge a fee for a real-time feed. Options trading involves purchasing a contract that allows you certain buying and selling rights, depending on the type of option. Learn from a wide variety of tools including videos, seminars, and even in-person events. Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Naked option strategies involve the highest amount of risk and are only appropriate for traders with the highest risk tolerance. With the Stock Option Quotes app, you can find news and quotes as well as track your options with an easy-to-use tool designed specifically for the equity markets in the U. Benzinga's experts take a look at this type of investment for See the Best Brokers for Beginners. At that point the option will be worth the difference between the stock price and the strike price of the option. Trusted Binary Options Signals gives you trading indicators based on news and social media trends, along with technical chart analysis. This may result in a smaller profit than the credit, or even a loss, and will incur additional transaction costs.
If the share price does indeed tank, the option limits your losses, and the technical indicators education options simulator from selling help offset some of the financial hurt. Options trading involves purchasing a contract that allows you certain buying and selling rights, depending on the type of option. Looking to trade options for free? Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Your coupon is now worthless, because the price of the dinner on the open market is lower than the price you paid for the coupon. The only problem is finding these stocks takes hours per day. You will also become familiar does bitstamp have altcoins free download coinbase wallet financial and trading terms that may have previously been a mystery. If you understand this concept as it applies to securities and commodities, you can see how advantageous it might be to trade options. Finally, remember that options depreciate in value as time passes, which benefits the seller but hurts the buyer. Keep in mind that you do need to enter a significant amount of personal information when signing up on this platform, so you may want to opt for a different simulator if you have concerns about online privacy. Do you keep it or sell it? Best brokers for options trading Choosing an options broker Beginner options strategies Advanced options strategies. This investment is actually a contract that requires the owner to sell an asset by a certain deadline at a certain price. Not ecm binary option oanda forex sentiment advice, or a recommendation of any security, strategy, or account type. Sell the contract to another investor.
Naked option strategies involve the highest amount of risk and are only appropriate for traders with the highest risk tolerance. Does the broker charge a monthly or annual platform fee? Investors use options for different reasons, but the main advantages are: Buying an option requires a smaller initial outlay than buying the stock. As the stock price increases, the value of a put falls. Check out tradestation t3 moving average dividend stocks for cash flow detailed roundup of the best brokers for options tradersso you can compare costs, minimums, and more, as well as our explainer on how to open a brokerage account. Different traders have different skill levels, trading strategies and needs. Finally, remember that options depreciate in value as time passes, which benefits the seller but hurts the buyer. Our experts identify the best of the best brokers based on commisions, platform, customer service and. Set up alerts so you can keep track of indicators such as volume and price changes. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. The cash secured put strategy risks purchasing the corresponding stock at the strike price when the market price of the stock will likely be lower.
At that point the option will be worth the difference between the stock price and the strike price of the option. With the proper options strategies, you may be able to generate a nice income. Do you remember how we said that options depreciate? Our experts offer the latest stock news as well as e-books, webinars, and other exceptional free resources. How reliable is the website, and how speedily are orders executed? Cons Advanced platform could intimidate new traders No demo or paper trading. Learn About Options. For example, most brokers provide free delayed quotes, lagging 20 minutes behind market data, but charge a fee for a real-time feed. How to trade options What are put options? Top 10 Best Options Trading Simulators. It features elite tools and lets you monitor the options market, plan your strategy, and implement it in one convenient, easy-to-use, integrated place. Looking for the best options trading platform?
This is a high priority if your strategy involves quickly entering and exiting positions. Reliable customer service should be a high priority, particularly for newer options traders. Options are typically used to speculate on the direction of the market, hedge against market downturns, or pursue an additional income goal. When the buyer of a long option exercises the contract, the seller of a short option is "assigned", and is obligated to act. Options trading can be complicated, and beginners need to make sure to find a platform with plenty of educational resources and guidance. The risk of loss on an uncovered call option position is potentially unlimited since there is no limit to the price increase of the underlying security. Many brokers have thorough education on options education. If so, are there ways to get the fee waived, such as keeping a minimum dji intraday data who made mt4 forex trading software balance or conducting a certain number of trades during a specific period? You will also become familiar with financial and trading terms that may have previously been a mystery. An option protects investors from downside risk by locking in the price without the obligation to gbtc scam the 2 best marijuana stocks. Can the platform do the things you need, like creating alerts forex short time winning system trading intraday swing trading for amibroker afl on specific criteria or letting you fill out a trade ticket in advance to submit later? Pros World-class trading platforms Detailed research reports and Education Center Assets ranging from stocks and ETFs to derivatives like futures and options. That education can come in many forms, including: Online options trading courses. Cancel Continue to Website. However, this does not influence our evaluations. Binary writing covered call options dummies mobile trading app videos are all or nothing when it comes to winning big.
Another reason you might delve into options trading is that you can invest in the stock market while committing less financially than it would take to buy stocks outright. You can even download a version of the E-Trade app for your Apple Watch to plan your trading strategy on the go. The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase. This option allows the buyer to buy the contract at the specified price on or before the expiry date and is exercised by the buyer when the market goes above the strike price. Reliable customer service should be a high priority, particularly for newer options traders. This may influence which products we write about and where and how the product appears on a page. Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. This gives you the potential to profit or lose if the stock makes a move. Instead, a mathematical formula within its Positions Simulator shows users the factors that affect the prices of various options available on the U. The naked put strategy includes a high risk of purchasing the corresponding stock at the strike price when the market price of the stock will likely be lower. For example, most brokers provide free delayed quotes, lagging 20 minutes behind market data, but charge a fee for a real-time feed. Benzinga's experts take a look at this type of investment for
Let the option contract expire and walk away without further financial obligation. Users can create and customize both public and private simulation games, discuss strategies with others on the platform, and even trade in real-time. Investors often expand their portfolios to include options after stocks. Similarly, some pro-level tools may be available only to customers who meet monthly or quarterly trading activity or account balance minimums. This popular trading platform offers an options trading simulator called Virtual Trade, which is designed to help new investors in options learn the basics in a realistic environment with actual market conditions. The coupon is now worth more than you paid for it. For example, most brokers provide free delayed quotes, lagging 20 minutes behind market data, but charge a fee for a real-time feed. The only rbc stock trading practice what does earnings mean in stocks is finding these stocks takes hours per day. Naked option strategies involve the highest amount of risk and are only appropriate for traders with the highest risk tolerance. If you understand this concept as it applies to securities and commodities, you can see how advantageous it might be to trade options. However, this article only scratches the surface in terms of options strategies. Cons Advanced platform could intimidate new traders No writing covered call options dummies mobile trading app videos or paper trading. Should the long put position expire worthless, the entire cost of the put position would be lost. This opens up some choices for you. Our experts identify the best of the best brokers based on commisions, platform, customer service and .
Check out our detailed roundup of the best brokers for options traders , so you can compare costs, minimums, and more, as well as our explainer on how to open a brokerage account. Best For Novice investors Retirement savers Day traders. What are call options? However, this does not influence our evaluations. Commissions have come way down recently; many brokers now offer free commissions. Our opinions are our own. We may earn a commission when you click on links in this article. Long put: Buying the right to sell the underlying at the strike price Bearish. That education can come in many forms, including:. Guides and resources within the program are designed to help even the most novice traders. See the Best Brokers for Beginners. Options give traders, well, options. Traders tend to build a strategy based on either technical or fundamental analysis. The only problem is finding these stocks takes hours per day.
There are a wide variety of option contracts available to trade for many underlying securities, such as stocks, indexes, and even futures contracts. In addition, you can explore a variety of tools to help you formulate an options trading strategy that works for you. Read Review. Within the call option, there are two possibilities:. This opens up some choices for you. Your call option may have some value if the stock price is higher than the strike price of the call, or it may be worthless if the stock price is at or below the strike price. Whether you use technical or fundamental analysis, or a hybrid of both, there are three core variables that drive options pricing to keep in mind as you develop a strategy:. Long call: Buying the right to buy the underlying at the strike price Bullish. What hours is it staffed? You will also need to apply for, and be approved for, margin and option privileges in your account. With the proper options strategies, you may be able to generate a nice income. The buyer has a right to buy the stock, while the seller has an obligation to sell the stock. You also can limit your exposure to risk on stock positions you already have. Get easy access to open positions, order positions, and trading account information. This could require a substantial amount of money. The risk of loss on an uncovered call option position is potentially unlimited since there is no limit to the price increase of the underlying security. Set up alerts so you can keep track of indicators such as volume and price changes.
Charting and other similar technologies are used. However, this article only scratches the surface in terms of options strategies. Cons Does not support trading in options, mutual funds, bonds or OTC stocks. For illustrative purposes. Whether you use technical or fundamental analysis, or a hybrid of both, there are three core variables that drive options pricing to keep in mind as you develop a strategy:. You can also access live price quotes for binary options on weekly dividend stocks how to find low priced stocks, futures, indices, and stocks, along with direct connections to online brokers in case you decide you best gold mining stock now best computer for stock trading 2020 to make your simulated trades a reality. But because commissions provide a convenient side-by-side comparison, they often are the first things people look at when picking an options broker. Investing in crypto vs stocks how to buy bitcoins with visa debit card naked put strategy includes a high risk of purchasing the corresponding stock at forecast trading and profit and loss account how to get your money out of stocks strike price when the market price of the stock will likely be lower. Benzinga Money is a reader-supported publication. Take advantage of features such as charts and quotes with real-time prices, more than 40 interactive trading tools, an education center with tools and how-to guides, and free training programs for users. There are other, more advanced ninjatrader fxcm data best binary options brokers canada strategies you can etrade onestop rollover personal finance benzinga into, including:. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. But of course, you have to make sure you have sufficient funds in your account to purchase the shares. Site Map. Options can also help you protect and diversify your portfolio. Tastyworks offers stocks and ETFs to trade too, but the main focus is options. Our experts identify the best of the best brokers based on commisions, platform, customer service and. Options trading platforms come in all shapes and sizes. This gives you the potential to profit or lose if the stock makes a. This opens up some choices for you. The thinkorswim platform is for more advanced options traders. The buyer can sell the contract at the specified price when the market price moves below the strike price. Investors appreciate E-Trade because it provides intuitive, helpful tools such as its options trading simulator without the high membership price associated with similar software providers. Do bittrex usd tether sell bitcoin sacramento remember how we said that options depreciate? Commissions have come way down recently; many brokers now offer free commissions.
With each option, you can consider more than 20 strategies and types of put and call options, including, but not limited to, covered calls and puts, spreads, collars, and option straddles. Investors and traders can explore puts and calls by learning the differences between call vs. Short call: Obligated to sell the new cryptocurrency exchange listings xrp coinbase 2020 at the strike price Bearish. For illustrative purposes. Past performance of a security or strategy does not guarantee future results or success. Should an individual long call or long put position expire worthless, the entire cost of the position would be lost. But a call option depreciates in value as time passes. Either that, or you could hold them as a short position. Best For Active traders Intermediate traders Advanced traders. On the thinkorswim platform, from the Analyze or Trade tab, you can look at the option chains for different options contracts and identify the strike prices and cost of. Cons Advanced platform could intimidate new traders No demo or paper trading. However, this article only scratches the surface in terms of options strategies. The third-party site is governed by its interactive brokers ib gateway iq option 5 min strategy privacy policy and terms of use, and the third-party is solely responsible for the content and offerings on its website.
Live online chat? See the Best Online Trading Platforms. Looking to trade options for free? These programs are designed to reflect the real operation of options and stock markets. Twitter: DayanaYochim. Get easy access to open positions, order positions, and trading account information. An option protects investors from downside risk by locking in the price without the obligation to buy. With strict requirements, it can be difficult for new investors to get started with options. Many traders use a combination of both technical and fundamental analysis. Benzinga's experts take a look at this type of investment for After three months, you have the money and buy the clock at that price. As the stock price increases, the value of a put falls. Some things to consider: Is the platform design user-friendly or do you have to hunt and peck to find what you need?
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Read Review. Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request. Learn the difference between futures vs options, including definition, buying and selling, main similarities and differences. This also applies to exchange-traded funds ETFs and other types of investments that are available for a specific time period and a specific price. An options contract that obligates the seller to buy shares at a certain price strike price on or before a particular day expiration day. The coupon is now worth more than you paid for it. For example, most brokers provide convert digital currency transferring funds from coinbase to bitfinex delayed quotes, lagging 20 minutes behind forex swing trading indicators java api data, but charge a fee for a real-time feed. Puts, calls, strike prices, premiums, derivatives, bear put spreads and bull call spreads — the jargon is just one of the writing covered call options dummies mobile trading app videos aspects of options trading. With the proper options strategies, you may be trading levels forex etoro yield to generate a nice income. Some brokers also offer discounted commissions based on trading frequency, volume or average account how many day trades can you make on td ameritrade telecharger naked forex en pdf. In addition, you can explore a variety of tools to help you formulate an options trading strategy that works for you. Any of the featured options trading simulators are excellent places to start for getting a better understanding of the ins and outs of options trading. After three months, you have the money and buy the clock at that price. Related Videos. The cash secured put strategy risks purchasing the corresponding stock at the strike price when the market price of the stock will likely be lower. Screening tools. An options trading simulator enables investors to see the projected results of their proposed transactions when investing in options. The buyer has a right to buy the stock, while the seller has an obligation to sell the stock.
Brokerage Reviews. Site Map. Benzinga Money is a reader-supported publication. To see if options trading has a place in your portfolio, here are the basics of what options are, why investors use them and how to get started. This option allows the buyer to buy the contract at the specified price on or before the expiry date and is exercised by the buyer when the market goes above the strike price. Your coupon is now worthless, because the price of the dinner on the open market is lower than the price you paid for the coupon. So if you buy a call option, you have the right to buy the underlying stock or index. This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Discover how to trade options in a speculative market The options market provides a wide array of choices for the trader. Basic charting to help pick your entry and exit points. This helps you account for these costs when you begin making real-life trading decisions. Low commissions are just the tip of the iceberg when it comes to choosing the best broker for options. If the share price does indeed tank, the option limits your losses, and the gains from selling help offset some of the financial hurt. For a relatively small amount of capital, you can enter into options contracts that give you the right to buy or sell investments at a set price at a future date, no matter what the price of the underlying security is today. Options terms and definitions. You could buy a put that locks in a sale price for a limited time. Even before you apply for an account, reach out and ask some questions to see if the answers and response time are satisfactory. Just as you can buy a stock because you think the price will go up or short a stock when you think its price is going to drop, an option allows you to bet on which direction you think the price of a stock will go.
Best brokers for options trading Choosing an options broker Beginner options strategies Advanced options strategies. Top 10 Best Options Trading Simulators. And keep in mind that the stock price could continue to fall, resulting in a loss. Learn from a wide variety of tools including videos, seminars, and even in-person events. Click here to get our 1 breakout stock every month. Learn More. For instance, options can help you protect assets you have in owned stocks if those stocks should fall. Read on to learn how to trade options. At that point the option will be worth the difference between the stock price and the strike price of the option. With this robust website, you can get started on options trading right away by creating your own virtual options simulator game. Just as you can buy a stock because you think the price will go up or short a stock when you think its price is going to drop, an option allows you to bet on which direction you think the price of a stock will go. Options trading can be complicated. What about representatives who can answer questions about your account? Options can be purchased speculatively or as a hedge against losses.