How to Trade Options on the Internet
Trading options online is very convenient and easy. All you need is an online brokerage account with options trading, which will be linked to a bank account for funding trades. Options trading typically requires an additional application or form to be completed. In the research section of the account, you will be able to view all the options trading on a stock or index, including price information. It is as simple as selectiing the option and writing (selling) or buying it.
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Instructions
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Open a brokerage account online. Visit several online brokerages, along with your bank's website, to compare trading fees and options available for trading.
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Request options trading in the brokerage account. Once the account is open, complete some additional forms to ensure you have at least the basic understanding of options and the risk they involve. This can take up to a week to be approved, so you can't buy an option the same day you open the account.
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Research options chains available. Type in a stock symbol and view the options trading for that stock. They may be shown by puts and calls, strike price or expiration date. Pay particular interest to the Open Interest, which tells you the number of options contracts at each strike price/expiration date.
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Write or buy the desired option. It will be as simple as clicking on the option you would like to buy or sell, just like buying or selling shares of stock.
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