For many sophisticated investors, trading options is a routine practice that can be hugely profitable, but retail investors can also transact options contracts on the open market. It's a strategy with potential to enhance investors' portfolios and to help them better navigate the market.
Want to succeed at trading options? You need to understand exactly how these contracts work. Salman Khan of the Khan Academy demonstrates how to read the options quotes provided by CNBC.com.
From this video, you’ll understand:
- How to read options quotes on CNBC.com
- Why options contracts are priced at different levels
- The expectations of buying put and call options
To access the chart seen in the video above, select "Options Chain" in a CNBC.com quote, or click here for the quote.