Options Basics | Investopedia

We’ve all heard of options. They may seem overwhelming to think about, but options are easy to understand if you know a few key points. Investor portfolios are usually constructed with several asset classes. These may be stocks, bonds, ETFs, and even mutual funds. Options are another asset class, and when used correctly, they offer many advantages that trading stocks and ETFs alone cannot. Options can be purchased like most other asset classes with brokerage investment accounts. You can check out some of the best places to trade in options with Investopedia’s list of the best brokers for options trading.

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