Three types of options

There are three types of options in Online Options Trading : warrant, call options, and put options.

• Warrant is the option that issued by a firm. Warrants give the holder the right to buy the firm stock from the firm at a specified price within a designated time period.
• Call option is the option to buy the stock of a firm within a given time at a specified price.
• put option is the option to sell the stock of a firm within a given time at a specified price.

What is the difference between warrants and call options in Online Options Trading?

• warrants are issued by the firm and call options are issued by another investor.
• warrants usually has longer time period than call options.

Conclusion :

1. If you expect the stock price to appreciate, then you can buy warrants or call options.
2. If you expect the stock price to decline, then you can buy put options.

Are you ready for Online Options Trading?

Learn the strategy in Option Trading Strategy.