On a basic level what are options and options trading?
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Options are contracts that give you the right, but not the obligation, to buy shares of a particular stock, on a particular date, at a particular price.
For investors who hold shares, it’s a way to hedge/lock in a price for a nominal fee. For speculators, it’s a way to bet on a stock in a way that may see much larger gains, but can also end up falling to $0 value.
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