Nowadays there are so many different ways in which one can actually earn money. And it'd be stupid not to take advantage of them. Well, We want our visitors to know all about online trading for it's one of the most comfortable and modern and promising ways of trading, and today we are going to discuss one of it's aspects, and namely - option trading.

Having studied our materials on option trading you will be able to know where to look for option pricing, which option combination is the best for you, and which trading strategy is the best for you. But first of all let's get to know in more details what does the word "option" stand for in finances.

An option is a contract between a buyer and a seller that gives the buyer of the option the right, but not the obligation, to buy or to sell a specified asset (underlying) on or before the option's expiration time, at an agreed price, the strike price. In return for granting the option, the seller collects a payment (the premium) from the buyer. Granting the option is also referred to as "selling" or "writing" the option. There are two main types of options: a call option gives the buyer the right to buy the underlying at the strike price. A put option gives the buyer of the option the right to sell the underlying at the strike price. If the buyer chooses to exercise this right, the seller is obliged to sell or buy the asset at the agreed price.