Today’s securities and stock market has witnessed vast in business expansion and operations. Many of the stock market dealing require a proper understanding of the modes of functioning and operation prior to joining or advising on them.
It is in this light that this paper shall discuss the concept, theories and practices in relation option trading to draw a clear understanding as a prerequisite for trading in option markets. In order to that effectively and efficient, the paper shall look at the historical perspective in brief, concepts relating to scholarly definition, parties to option contract, types of options traded, pricing of the options, how security for investment is catered for and benefits one is likely to get in engaging in option trading.
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