Stock Trading.

Options give you the right to buy or sell a security.

When you buy an option, the most you can lose is the amount you pay for the option.

Each option corresponds to 100 shares of underlying security.

When you buy an option, it is a cash purchase, there is no margin requirement.

The maximum profit when you write an option is the amount of the premium received.

 An option loses its time value the fastest during the last 30 days before expiration.

More than 80% of options expire worthless.

The lower the underlying futures volatility, the lower the option premiums.

The higher the underlying futures volatility, the higher the option premiums.

Options are less liquid than the underlying futures.