Option Market

Options market share has become more important with nine exchanges competing for orders, up from six in 2007. A pilot program to quote some contracts in 1-cent price increments that year also produced changes in the rules some exchanges use to match orders, intensifying the battle for volume.

Stock options have been trading on organized exchanges for nearly thirty years. In 1973, the first US options exchange was founded and call options on 16 securities started trading. A few years later, put options began trading. A decade later, index options appeared on the scene. Today, five exchanges are active in trading options and annual options trading volumes continue to set records. Indeed, over the course of thirty years, from the early 1970s until now, a great deal has changed in the world of options trading. What was once domain to mostly sophisticated professional investors has turned into a vibrant and dynamic marketplace for investors of all shapes and sizes.

Many investors are scrambling to buy defensive put options, demonstrating little concern with how much it costs to hedge Hewlett-Packard shares. They are paying top dollar to buy put options that will increase in value if the stock declines below $40 in the next few months.

For investors who think the stock ultimately regains its' bullish footing, selling the high-priced put options that today are in demand seems like a reasonable trade. The November $42 puts, for example, were recently trading at $2.44, which positions investors to buy the stock at $39.56. This stance is not without risk, but at least the risk is tempered.

This is the place where the stock market and shares are traded. Corporations, ranging from small to large blue chip companies listed in the stock market. If you are medium or small capital investor, then you can do more useful Nifty Option Tips . To do this, you should get a crystal clear idea of the different options. However, Nifty option only product that can make you maximum profits.

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