He thinks this window will give him enough time to profit if the stock extends its rally. He checks the so-called option chain of the stock and sees that the next option expiry is in 20 days.
He doesn't want to miss a potential rally though, so he decides to buy a call option on the stock instead of buying it outright. Mr Chase thinks there might be still some juice left in it, but at the same time, he's afraid of a downward price correction. Mr Chase really likes a recent hot stock called Hype, whose price has gone up from $10 to $14 in a very short time. Let's have a look at how a handful of traders with different motivations can buy and sell options in the same individual equity. Remember that when trading options the minimum size is one contract, which represents 100 shares of the underlying asset.
Keep in mind that US brokers require you to have a minimum balance of $2000 to maintain a margin account. However, less risky strategies, such as buying a call option, are allowed on cash accounts, too. Some riskier types of trades, like selling call options on stocks you don't own or writing an uncovered put option, can be made only on a margin account. Options trading strategies involve different degrees of risk and complexity. Since AMP Futures doesn't offer options on individual US stocks, you might want to find an alternative broker by reading our article about the best brokers for options or alternatively, use our Find my Broker tool for a tailored recommendation. AMP Futures available options markets vs competitors Yes, you can trade options at AMP Futures.
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