General Question

isorabins's avatar

How do I sell options?

Asked by isorabins (53points) September 28th, 2007 from iPhone

how do I sell options to make money on non moving stocks?

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1 Answer

justin's avatar

You sell the option to buy the stock at a given price some time down the road. If the stock doesn’t move, and the price is above the market price, they don’t buy it, or ‘exercise’ the option. Then you’ve made a little extra money.

If the market price does go above the agreed upon ‘strike’ price, then they will buy, and you’ve sold your stock at the guaranteed price.

justin (179points)“Great Answer” (0points) Flag as…

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