A:

The trading of options has become increasingly popular among retail investors as they become aware of the many different ways that options can be used to generate large profits. The interesting thing about option strategies is that investors can use them in all types of market conditions; the primary question becomes which securities should be used when implementing a certain strategy.

As the question suggests, many beginner option traders quickly discover that not all stocks have an option chain associated with them. This means that there may be no options available to buy or sell on a certain stock, and it leaves the investor no choice but to buy or sell the stock on the market if he or she wishes to get exposure to a given company. (To learn more about this subject, see What requirements must a company meet before exchanges will allow options on the company to be traded?)

The easiest way to find out which stocks do have options is to visit the websites of the exchanges where the majority of equity options are traded. These exchanges are the Chicago Board Options Exchange (CBOE), American Stock Exchange, Boston Options Exchange and the NYSE Arca (formerly the Pacific Exchange). The website of each of the exchanges mentioned has a directory of the options that are available for trading on that given exchange. For example, you can click here to go to the symbol directory for options listed on the CBOE.

To learn more about options, check out the Options Basics Tutorial.

RELATED FAQS

  1. What risks should I consider taking a short put position?

    Learn what risks to consider before taking a short put position. Shorting puts is a great strategy to earn income in certain ...
  2. What happens if a software glitch fails to execute the strike price I set?

    Find out why trading software can be a double-edged sword, and learn what to do if your trade isn't executed because of a ...
  3. In what market situations might a short put be a profitable trade?

    Discover in what market situations a short put trade might be profitable. Selling puts is a good strategy when a trader is ...
  4. What is the relationship between implied volatility and the volatility skew?

    Learn what the relationship is between implied volatility and the volatility skew, and see how implied volatility impacts ...
RELATED TERMS
  1. Strike Width

    The difference between the strike price of an option and the ...
  2. Inverse Transaction

    A transaction that can cancel out a forward contract that has ...
  3. Reference Equity

    The underlying equity that an investor is seeking price movement ...
  4. Boundary Conditions

    The maximum and minimum values used to indicate where the price ...
  5. Delta-Gamma Hedging

    An options hedging strategy that combines a delta hedge and a ...
  6. Gamma Hedging

    An options hedging strategy designed to reduce or eliminate the ...

You May Also Like

Related Articles
  1. Mutual Funds & ETFs

    4 Ways You Can Invest In Gold Without ...

  2. Active Trading Fundamentals

    How To Short Amazon Stock

  3. Forex Education

    Trading Forex Options: Process And Strategy

  4. Investing Basics

    Try Southwest Airlines Options To Avoid ...

  5. Options & Futures

    Tax Treatment For Call & Put Options

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!