How To Buy Stock Options Basics ✦ Top-Rated

: The "due date" for the contract. After this date, the option becomes void and worthless.

: This is the "fee" you pay upfront to own the contract. If you see a premium of $2.50, the actual cost is $250 ($2.50 × 100 shares). how to buy stock options basics

: The pre-agreed price at which you can buy or sell the stock. : The "due date" for the contract

: One standard options contract typically controls 100 shares of the underlying stock. how to buy stock options basics