How Do You Buy & Sell Stock Options?
“Hello, I’m Roger Groh with Groh Asset Management. Today we’re here to talk about how you buy or sell stock options. Really there are two parts to this. One is in a public company, how do you buy or sell stock options and it’s pretty simple. You go to your local broker, stockbroker or you go to your local discount broker or online and you say to them I would like to open an option account. They’ll look at how much money you have, how sophisticated you are and how much risk that they think that you can assume and they will let you open and buy and sell different types of options. For instance, if you’re a basic investor with little options experience, they may limit you to covered call writing which basically means that the brokerage firm is going to get their money back because in an option most of the time, they lend you money. On the other hand, if you’re a very aggressive, large investor and you wanted to do something like sell naked puts which aren’t as quite well risky as they sou
