Investing Basics: Options

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Options involve significant risks and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/about/publications/character-risks.jsp ) before investing in options.

Options are an alternative way to speculate on the performance of a security, such as a stock or ETF. In this video you’ll learn how options work, how they can help qualified investors control more with less, and the risks associated with trading options.

To learn more about trading options, tune in weekly to the Getting Started with Options
webcast for livestreamed interactive sessions with TD Ameritrade Education Coaches: https://bit.ly/GettingStartedWithOptions

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20 Comments

  1. Quick quiz: Standard equity options contracts control how many shares of underlying stock? A) 1 B) 20 C) 100 D) The seller decides

  2. I'm confused about what it costs to exercise a Call option, so let's use Apple at a strike price of $140.00 as an example. If I exercise a call option on Apple at a strike price of 140.00, will I need $14,000.00 in my account to purchase one hundred shares?

  3. I tried calling but it was a 2 hour wait so I think this would be better. can I exercise a out of the money covered call or does it have to be in the money

  4. nobody does it like TD Ameritrade thank you guys for being the best and helping me so much through my journey

  5. From the example in the video, I have to pay the premium $100 and the 100 shares (worth $50 at the time) which is $5100. So when it hits the strike price i'll have to pay that $5100 right away? What if i don't have $5100 in my account?

  6. So the most you can lose period is your initial investment? If you miss the strike price you don’t have to actually buy 109 shares right ?

  7. I bought a Tesla buy call of 440 but I think it’ll hit 500 tomorrow and then option doesn’t expire until December 18 and I want to sell the 100 shares and take profit so I sell the contract or do I excerse the contract because I don’t have enough money to buy a 100 shares of Tesla a

  8. When I exercise the option I bought, will I have to pay the stock's present market price at the time of execution ??

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