Stock Options 101: What You Need to Know Before Trading

There are huge potential gains to options trading, but lots of risk as well

Stephen Foerster
8 min readSep 30, 2021

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Laptop with a security price chart
Photo by Tech Daily on Unsplash

Options trading has exploded this year. According to The Wall Street Journal, going back to 1973, the inception of organized options trading on the Cboe (pronounced “see-bo” and originally known as the Chicago Board Options Exchange), nine of…

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Stephen Foerster

I’m a Finance prof, CFA, and author of In Pursuit of the Perfect Portfolio (with Andrew Lo). I write stories about investing. (I don’t give financial advice.)