What is an Option?
An option is simply a right that one has, i.e. the “right” to exercise or not to exercise the option.
What “Rights” Do My Options Give Me?
When you have a “Right”, you have something of value, since you have the right to make the decision as to your financial self-interest. In other words, the decision whether or not to exercise your option. You will exercise that “Right” when doing so makes you financially better off, or will not exercise the “Right” when doing so makes you financially better off. [Read more…]