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Be sure to check out the hobbyist sections of our site. We're in the process of rolling out sections on photography and everyday gadgets. We don't focus on the cutting edge, new technologies -- we're focusing on how to use new technologies in everyday life.

Gadgets
every day uses for new and old technologies.

Buying and Selling Options

An option is the right to buy or sell a specified stock at a specified price within a specified period of time. At the end of this period of time, the option contract expires. There are two types of options for you to choose from, known as Puts and Calls. A Put is an option to sell a stock. A Call is an option to buy a stock.

There are a few terms that you will need to know when investing in stock options:

  • Expiration Date - the date that the option expires
  • Intrinsic Value - what the option is worth as stock
  • Exercise Price - the price at which the investor may buy or sell the underlying stock.
  • Premium - the market price of the option.

Why invest in options? That is quite simple. The reason for investing in options is that options offer a far greater return than investing directly in stock. The reason for this increased return is that there is a much greater risk than investing in the stock itself. Our stock option 'calculator' illustrates this point.

Options Calculator



If you're looking for information on the the FinPlan Divorce Planner (from the other FinPlan company), please continue on to http://www.divorceplanner.com.
Note - FinPlan.com does not offer any information regarding this program nor does it have any relationship with the company offering the software. This link is provided as a service only.
FinPlan.com offers several online tools and calculators as well as some software programs from FinPlan, Inc. FinPlan started developing software in the 1980s developing 10 programs covering several personal finance topics.

Family Retirement Planner
The FinPlan Family Retirement Planner provides an excellent high-level retirement planning model to help you determine your retirement planning needs which will allow you to develop a strategy to get there.

Financial Toolkit
The FinPlan Financial Toolkit provides a variety of financial tools designed to help you answer many questions on personal finance.
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New on the Site:
Outdoor Photography Blog
Outdoor Photography Gallery
Beginning Photography
Intermediate Photography
Advanced Photography
Photo Section Index

Friends of FinPlan:

Financial Calculators
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New
Economic Indicators. A primer on several key economic indicators and what they can tell you about money and investing.

Important Facts
Effective January 1, 2002 there have been a few changes to the Traditional IRA. These changes are outlined here.

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