I first got involved with stock options back in the 1990s the way a lot of people do.

I was given some by my company as a perk called an ISO, an “Incentive Stock Option.” What I didn’t know then was that anyone could buy and sell these types of options on the exchange without being a key employee of a company.

And this is the first piece of education you should be getting when it comes to options:

Once you get comfortable with the basics, the opportunities to make money become endless.

Options are one of the most versatile, if not the most versatile, trading instrument ever invented. Since options cost less than stock, they provide a high leverage approach to trading that can significantly limit the overall risk of a trade or provide additional income.

To me an option is like renting a stock, with the intent to turn around and “Sell the Rental” to someone else when the stock moves in the direction you want.

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