Buying And Selling Calls And Puts -

: The predetermined price at which the stock can be bought or sold.

Before placing a trade, you need to understand the basic mechanics: buying and selling calls and puts

: One standard equity option contract typically controls 100 shares of the underlying stock. : The predetermined price at which the stock

: This is the price you pay (as a buyer) or receive (as a seller) for the contract. If an option is quoted at , the actual cost is the actual cost is