This chapter introduces what an option is and how to visualize options in an intelligent way while hinting at the great flexibility and power a sensible use of options gives an investor. It is split into three sections:
1. Option Overview: Characteristics, everyday options, and a brief option history.
2. Option Directionality: An investigation of similarities and differences between stocks and options. This section also contains an introduction to the unique way that this book visualizes options and to the inescapable jargon used in the options world and a bit of intelligent option investor–specific jargon as well.
3. Option Flexibility: An explanation of why options are much more investor-friendly ...