HOW A STOCK AND OPTION ARE LINKED

The option market is the stock market’s central nervous system.   How an Option Contract and Underlying Stock are linked: One Option Contract = 100 Shares of Stock   Options are “Derivatives” – meaning they “DERIVE” their value from the underlying stock.   An option is just a paper contract. That contract must be LINKED to a stock of some company, which is called the … Continue reading HOW A STOCK AND OPTION ARE LINKED