Option Trading 101: Single Option Strategies | TD Ameritrade Network: Swim Lessons
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/about/publications/character-risks.jsp) before investing in options.
Options are contracts that give the owner the right to buy or sell an asset at a fixed price, called the strike price, for a specific period of time. Scott Connor, Director of Trading Education at TD Ameritrade, joins Swim Lessons to explain single option strategies. He compares the call option strategy to a coupon – you can buy a certain product at a certain price until it expires. For more, watch Swim Lessons every market day at 10:00 AM CT on https://tdameritradenetwork.com.