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Option - Definition
Below, you'll find a definition of this investing term...

Definition: An option is the right for a person to buy or sell a stock at an agreed upon price and date.

TeenAnalyst Advice: People use options for various reasons.  Some use them to speculate, and some use them to hedge their positions.

Call options are options that allow the person to bet on the stock going up.  Put options allow the investor to bet on the stock going down.

Options are quite risky for young investors!

 

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