Index Options: An Introduction for Traders

Jul 9 18:23

Disclaimer:

Options trading is risky and not for all. Read the ODD before trading

Exchange traded Index options are similar to exchange traded equity options in that all options involve risk and are not suitable for all investors. Index options have special characteristics and risks. Index option exercises are settled with cash, not securities. In addition, because the exercise price of an index option is generally based on the closing index value, an index option that is in the money during trading hours may be out of the money when the closing value is calculated — a risk to consider whenever you place an exercise order before the closing value is known.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more