Options are the best way to leverage time, money and assets to generate income and build wealth.
How does it work?
A stock option is a privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy or sell a stock at an agreed upon price within a certain period of time.
To illustrate an option in real estate terms:
Let’s say you want to buy 123 Pine Street and you offer the owners $1,000 to sell you their house for $200,000 before February 9th. If the owners accepts your offer, and you notify the owner that you are exercising your right to buy the home before time expires on February 9th, they must sell you the house at the agreed upon price. Even if the house is worth $300,000, the owners are obligated to sell it to you at the agreed upon price of $200,000.
Now illustrated using a stock-
You can pay $1,000 to the owner of AAPL shares to gain the right to buy 100 shares of AAPL stock, at a price of $170 per share, before expiration on February 9th. If on or before February 9th you decide you want to buy the 100 shares, then the owner must sell them to you at $200 per share even if the AAPL shares are trading at $300 per share.
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Which you can start using to generate extra income.