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Limitations on capital. Stronger or weaker directional biases. Of course given the risks, which are frequently greater and more complex, options are not for everyone.

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When getting started with options, it is advantageous to work with strategies that allow you to be confident that you know how to open, manage, and close your positions. That notice is simply a message from your broker telling you that your short option was exercised and that you automatically sold shares at the strike price. Your option position has disappeared once exercised, the option no longer exists and the stock has been removed from your account.

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Option buyers are charged an amount called a "premium" by the sellers for such a right. In contrast, option sellers option writers assume greater risk than the option buyers, which is why they demand this premium. Options are divided into "call" and "put" options. There are some advantages to trading options.

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