One of the most
prevalent uses of
stock options is to
control the amount
of profit that may
be anticipated by
the movement of a
given stock. Buying
a
call stock option
or a
put stock option
allows a trader to:
Buy or sell
short 100 shares
of a stock for
each stock
option contract
with a lot less
money that would
be required to
buy the same 100
shares
Earn greater
return and limit
losses at the
same time
