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Working Guide 1 Section 1. Introduction to Option Trading Trading stock options is a much different game from trading the underlying stocks. When options are traded

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2 Options trading entails significant risk and is not appropriate for all investors. Prior to trading options, you must receive a copy of Characteristics and Risks of

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Trading options involves buying or selling a stock at a set price for a limited period of time. Here’s NerdWallet’s guide to how option trading works.

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1 Introduction to Options By: Peter Findley and Sreesha Vaman Investment Analysis Group What Is An Option? • One contract is the right to buy or sell 100

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