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Options are kind of complex. There are two kinds, CALLS and PUTS. ~A CALL gives you the right to BUY 100 shares of a given stock at a fixed price before a set date in the future. Normally in 3, 6 or 9 months. If you don't buy within this period of time, you will have to pay a PREMIUM that is not refundable, so if you don't exercise your options, you'll be out that money. ~A PUT is the opposite of a CALL. A PUT gives you the right to SELL a set amount of shares at a given price within a set time, again in 3, 6 or 9 months. People that use PUTS are normally expecting the price of the stock to fall. In practice, most PUT and CALL options are rarely exercised. Most times the investor buy and sell options prior to the expiration, trading on the rise and fall of premium prices. I hope this info helps a bit :)

also i can advice u one thing that options are very dangerous if not performed properly but very lucrative on the other hand so make your choice wisely because u can loose money fast but make a lot fast too.. your risk/reward ratio is high.... i have a friend who makes descent income through them... ill ask em if there are strategies for it and post here... chahine

Options give you the opportunity to own a lot of stock for a little money. If you are right then it's great. If you are wrong you wipeout 100% of capital. Can people make a lot of money trading options? Certainly. But it takes a great deal of knowledge. I recently saw an infomercial that was selling the ease of making money in options. Not very believable at all but that's what people want to hear. Options are definitely a great idea if you are bullish on a particular stock and a bit short on capital. You can hold a bigger chunk.

I've been looking at this and it is really intriguing to me. Does anyone know any web sites or literature where I can find out more information on this? Is there a special kind of broker that deals in options? Any further info would be much appreciated.

Any discount brokerage will offer options. I would say hit the library and check out any book on options. The subject is not super complex but it will require some research. You also need to fill out an application with the Broker. It clearly outlines that you understand you can lose 100% of your money.

For an easy way to learn about options Go to: YAHOO FINANCE. then OPTIONS: then: OPTIONS 101.