Options have expiration dates, while stocks do not.

There is not a fixed number of options, as there are with stock shares available.

Stock owners have a share of company, with voting and dividend rights. Options covey no such rights.

There are only two kinds of options: Call Options and Put Options.

Call Option A Call Option is an option to buy a stock at a specific price on or before a certain date. In this way, Call Options are like security deposits. If for example you wanted to rent a certain property, and left a security deposit for it, money would be used to insure that you could, in fact, rent that property at price agreed upon when you returned. If you never returned, you would give up your security deposit, but you would have no other liability. Call Options usually increase in value as value of underlying instrument increases.

When you buy a Call Option, price you pay for, called option premium, secures your right to buy that certain stock at a specific price, called strike price. If you decide not to use option to buy stock, and you are not obligated to, your only cost is option premium.

Put Option Put Options are options to sell a stock at a specific price on or before a certain date. In this way Put Options are like insurance policies.

If you buy a new car, and then buy auto insurance on car, you pay a premium and are, hence, protected if asset is damaged in an accident. If this happens, you can use your insurance policy to regain insured value of car. In this way, Put Option gains in value as value of underlying instrument decreases. If all goes well and insurance is not needed, insurance company keeps your premium in return for taking on risk.

With a Put Option, you can “insure” a stock by fixing a selling price. If something happens which causes stock price to fall, and thus “damages” your asset, you can exercise your option and sell it at its “insured” price level.

If price of your stock goes up and there is no “damage,” then you do not need to use insurance, and once again, your only cost is premium. This is primary function of listed option, to allow investors ways to manage risk.

Hopefully this brief insight into Options gave your enough information for you to be able to decide whether or not Options are something you would like to learn more about.

There are a few different versions of home equity loans that you can apply for and receive, and when you apply for a home equity loan online you'll make a decision as to whether or not you need a line of credit, a fixed loan, or what is called a 125% loan. The line of credit is a good choice if you want to have money available to borrow at any time, such as for home improvements or sending children to college. A fixed loan option is perfect for individuals who know exactly how much money is needed and only want to borrow once, while a 125% loan is useful for people who want to consolidate debts but do not have much equity in their home yet. The 125% loan allows borrowers to borrow up to 125% of property value and usually offers a fixed interest rate.

************************************ Brad Triggs provides more information and free mortgage quotes at his website: e-Loans-Now.com - Home Equity Loan Online ************************************