Stock
Share of ownership in a company
What is Stock?
Stock A share of ownership in a publicly traded company. Stocks are the most common underlying asset for listed options contracts. Each standard equity option contract represents 100 shares of the underlying stock.
Complete Definition
A share of ownership in a publicly traded company. Stocks are the most common underlying asset for listed options contracts. Each standard equity option contract represents 100 shares of the underlying stock.
Example
You own 100 shares of AAPL stock at $150/share. You could sell a covered call against those shares to generate income.
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