An option is the right - but not necessarily the obligation - to buy or sell shares of a certain security at a certain pre-decided price on a certain pre-decided date. Options lever you up - often traded in segments of 100 shares.
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When you purchase an option, you're purchasing the right
When you purchase an option, you're purchasing the right
To buy or sell shares when the price hits the strike
An option that's a call lets you buy at a stated price-
When it hits the strike, you in the money and lookin nice
An option thats a put lets you sell when the strike reaches
When it drops in the money buy property on the beaches
A single option usually contains 100 shares
And becomes a tug of war, between all the bulls and bears
When you own calls, you become invested in success
When you own puts, you hope the company comes under stress
Its often that the institutions bet on business dying
And you hear them bashing on the news just making stuff up, lying
The stock goes up, theyre crying- When it goes down they cheering
Financial education can translate what you're hearing
So the news can be skewed, and the truth is uncertain
So the best way to gather data's researchin with Urvin
