This page contains past postings from "Phil's Comments" that were specific to explaining options and how they work. We feel that these bits of information are very helpful for anyone who is not sure what options are or how they work. Click on any link below to view commentary on that subject.
Part 1 - The Basic Idea
Part 2 - Premium & Strike Price
Part 3 - Market Movement & Volatility
Part 4 - Option Combinations
Part 5 - Hedging Your Position in a Wild Market
There is a risk of loss in trading futures and options. Past performance is not indicative of future results. Stops become market orders once the price is touched or violated; therefore, stops do not guarantee a fill at the price on the ticket. The information and data on this site was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed on this site will be the full responsibility of the person authorizing such transaction.