HOW A STOCK AND OPTION ARE LINKED

THE UNDERLYING STOCK (Without me, you’re nothing!) The option market is the stock market’s central nervous system. Options are “Derivatives” – meaning they “DERIVE” their value from the underlying stock. How an Option Contract and Underlying Stock are linked: One Option Contract = 100 Shares of Stock An option is just a paper contract. That contract must be LINKED to a stock of some company, … Continue reading HOW A STOCK AND OPTION ARE LINKED