This is not the case anymore. There is now enough information and knowledge available to the "small investor" such that they have become a force to be reckoned with.
Where did stock options trading originate? Back in 1973 the Chicago Board of Exchange opened the Chicago Board of Options. This little outfit has grown to become the largest single options trading floor in the US.
Why did people want to trade options? People wanted a way to help secure the investments that they were already making in the stock market. They wanted a way to help insure the trades that they were making. Thus the market began and along with it stock options trading. I will discuss more in the next article about why people saw options as a god way to insure their investment. But first, I feel that I need to discuss options trading terminology first.
What about a little terminology on stock options trading? There are so many different terms that some are not familiar to those who do not trade. A few of the most common terms are below
