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Options Trading

Options Trading

Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period of time. Stock options are traded on a number of exchanges, including:

Before trading in options, you should educate yourself about the various types of options, how basic options strategies work, and the risks involved. If you have a question about options, you can contact the Options Industry Council at 1-888-OPTIONS (1-888-678-4667) or visit its Learning Center web page. On the OIC website, you can also read a number of publications, including the "Characteristics and Risks of Standardized Options" booklet.

We have provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.