How To Buy - Stock Options Basics

: The pre-agreed price at which you can buy or sell the stock.

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

: 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). : The pre-agreed price at which you can