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Information Corner:
Why Trade Index Options - Less uncertainty:
The key reason we trade index options rather than options on individual
stocks is that price and volume fluctuations are much higher for a
particular stock than they are for an index. Stocks often react wildly
to unpredictable events, such as news, rumors...
Expiration Date - At the end of
the expiration date, all those call options whose strike prices are higher than
the price of the underlying stock or index will be worthless...
Start To Trade -
Placing an options order is very similar to placing an order for a stock. If you
use a live broker, call your brokerage firm and tell them which option you want
to buy...
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