Investing in stocks, bonds, option and other financial instruments involve risks and may not be suitable for everyone.
Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document are available at http://www.cboe.com/Resources/Intro.asp or from your broker. Copies are also available from the Chicago Board Options Exchange, 400 S. LaSalle Street, Chicago, IL 60605. The OCC Prospectus contains information on options issued by The Options Clearing Corporation. Copies of this document are available from The Options Clearing Corporation, 440 S. LaSalle Street, 24th Floor, Chicago, IL 60605 or the Chicago Board Options Exchange, 400 S. LaSalle Street, Chicago, IL 60605. The documents available discuss exchange-traded options issued by The Options Clearing Corporation and are intended for educational purposes. No statement in the documents should be construed as a recommendation to buy or sell a security or to provide investment advice.
Options behavior in a falling market.
In a falling market it is possible that the short option may not reduce in value at the same rate as the underlying security due to the remaining time value.
Other important information regarding the content on this site.
All stocks, bonds, mutual funds, options, and other financial instruments shown are examples only, meant for educational purposes. These are not recommendations to buy or sell any security. Any pricing or potential profitability shown does not take into account your trade size, brokerage commissions or taxes which will effect actual investment returns. Investment examples and comments presented are solely those of the analysts, experts, or information source quoted. They do not represent the opinions of Seven Summits Strategic Investments or the various information providers on whether to buy, sell or hold shares of a particular stock or option. Investors should be cautious about any and all stock or option recommendations and should consider the source of any advice on stock or option selection. Various factors, including personal or corporate ownership, may influence or factor into an expert's stock analysis or opinion. All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock or option performance is no guarantee of future price appreciation or depreciation. Those involved with the preparation and distribution of this report may have had in the past, currently hold, or may purchase in the future stock and/or options in companies discussed in this report. It is expected that the limited distribution of this report to a relatively small number of investor will not materially affect the price of this widely held stock.