Stock Option

May 9, 2024

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A stock option grants the holder the right, but not the obligation, to buy or sell a specific amount of shares of a company at a predetermined price, within a specified time frame. There are mainly two types of stock options—call options (the right to buy) and put options (the right to sell). Stock options are widely used in executive compensation plans and as financial instruments traded on derivatives markets.

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About the author 

Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.

Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.

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