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The Ins and Outs Of How Options Trading Works
Options are purchasing the "option" to buy or sell a security if it reaches a goal price at a certain time. For example, say I want to buy (and this would never happen, it's just easier to think about when you aren't talking securities and are talking objects we buy daily) tomatoes. I want 40 tomatoes, but not at $1.50 each. I want them in 30 days, so if in 30 days, those tomatoes go below $1.20 each, I will buy 40 tomatoes.
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