Okay, so I just tried to open some Questrade accounts and I have to choose account options on the first screen. I've read 5 investing books and various online entries and I have no idea what these mean! Help?
Long calls and long puts
A call is an option contract giving the owner the right to buy a specified amount of an underlying security at a specified price within a specified time. A put is an option contract giving the owner the right to sell a specified amount of an underlying asset at a specified price within a specified time.
Covered calls and covered puts
Covered calls are an option strategy whereby an investor holds a long position in an asset and writes (sells) call options on the same asset. Covered puts are a strategy whereby an investor holds a short position, and writes (sells) put options on the same asset.
Spreads
A spread is an options position established by purchasing one option and selling another option on the same security. To qualify as a spread, the options bought and sold must both be calls or puts.
Uncovered options. A written (sold) call or put is uncovered (naked) when the option is not a part of a covered call, covered put, spread, short straddle, strangle, or combination. Short straddles, strangles and combinations occur when selling both calls and puts on the same security.
None
You will not receive access to free options data if you select no options. You are not required to trade options, however you can receive free data if you select an option level.
