Replies to post #190263 on Wave Systems Corp. (fka WAVXQ)

[brant_point]

Harry1

http://en.wikipedia.org/wiki/Option_(finance)

In finance, an option is a contract between a buyer and a seller that gives the buyer of the option the right, but not the obligation, to buy or to sell a specified asset (underlying) on or before the option's expiration time, at an agreed price, the strike price.

In return for granting the option, the seller collects a payment (the premium) from the buyer. Granting the option is also refered to as "selling" or "writing" the option.

*A call option gives the buyer the right to buy the underlying at the strike price.

*A put option gives the buyer of the option the right to sell the underlying at the strike price.