Trading Products
Options give you the right - but not the obligation - to buy or sell an asset at a specified price before an expiry date. Implement strategies whether markets are rising, falling, or moving sideways.
Understanding Options
An option is a contract that represents the right to buy or sell a financial product at an agreed-upon price for a specific period of time. You can typically buy and sell an options contract at any time before expiration.
Options are available on numerous financial products, including equities, indices, and ETFs. Options are called derivatives because the value of the option is derived from the underlying asset.
Owning an option does not impart ownership in the underlying security, nor does it entitle the holder to any dividend payments. Whether you are bullish, bearish, or neutral, incorporating options into your strategy gives you the ability to implement additional strategies beyond simple buying and selling.
Contract Types
A call option gives the contract holder the right to BUY the underlying stock at a specified strike price by the expiration date. Calls are typically purchased when you expect that the price of the underlying stock may go up. Your maximum loss is limited to the premium paid.
A put option gives the contract holder the right to SELL the underlying stock at a specified strike price by the expiration date. Puts are typically bought when you expect that the price of the underlying stock may go down. Puts are also used as portfolio insurance against existing positions.
Strategies
Why Ledgeworth Capital
Plan and execute options strategies across web, mobile, and desktop. Real-time pricing, Greeks analysis, and multi-leg order entry in one integrated platform.
Get real-time trade analysis and focused support from options professionals during trading hours. Our team understands the complexity of options strategies.
Access education resources from articles to videos and live webcasts that help you understand the basics and advanced techniques of trading options.