Purchasing an option confers on the holder the right, but not the obligation, to buy (in the case of a call options) or sell (in the case of a put option) shares of a company at a specified price (the strike price) on or before a given date (expiration day).

The seller of an option is then obligated to sell (or buy) the shares to (or from) the buyer of the option at the specified price upon the exercise of the option by the buyer.

Options provide the buyer with the choice to set the maximum amount they are willing to risk, as well as providing greater leverage and exposure to a stock with a lower capital outlay. Options do, however, carry a higher risk and are subject to time decay.

Our advisors can work with investors to execute simple strategies such as buying a “call” or “put” or more complex combination trades.