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The Most Basic Explanation of Stock Options, Ever

Chances are, you’ve probably heard a thing or two about stock options. From Mark Cuban using options to hedge his massive $1.4B Yahoo! stock after they acquired his company, Broadcast.com in 1998 to a young Robinhood trader who turned $766 into over $100k with just two trades.

Options are growing rapidly in popularity. “Since the year 2000, while stock-market trading volume has more than doubled, stock-options volume has grown to more than six times what it was then, at around 4.4 billion options contracts in 2019, according to Options Clearing Corp” reports the WSJ.

Even with all this buzz, it can be hard to fully wrap your head around what exactly these options are, and if they make sense for you. Our friends over at Sky View Trading put together what we think is one of the most simple, non-scammy videos to introduce the topic. Peep it below.

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