How Do You Exercise & Hold Stock Options?
Exchange traded stock options are financial instruments that, for a fee, gives the option holder a contract to buy or sell a particular stock at a specific price anytime prior to the exercise date. Once the option is contracted, the holder waits for a change in the market that’s beneficial to the stance taken in the contract. As a holder, you can then exercise the option, buying the contracted stock from the other contract participant at the agreed upon option price, or selling stock you hold to the other participant at the agreed upon price. The only risk taken by the option holder is the fee paid upon creating the contract. Locate a stock brokerage that allows the purchase of options contracts. Most large brokerage houses handle options, but you can be sure of the determination by contacting them by phone or checking their website for information. Choose the contract date that you want the option to expire — this is the exercise date. The further away the date, the more expensive t
