Equity Options - The Right Choice for You?

Individual investors are playing an increasingly active role in today's dynamic stock market. Many of those investors are utilizing exchanged-traded equity options to manage their stock investment portfolio.

Here are a few facts to consider:

• An equity option is a financial tool that gives you the right to buy (call) or sell (put) a certain stock at a certain price (strike price) for a certain amount of time.
• Options are currently available on more than 1,800 of the most actively traded common stocks.
• You have the right, but not the obligation, to exercise your options and buy or sell your shares.
• One option typically represents 100 shares of stock.

Options are listed on five major securities exchanges: The American Stock Exchange, The Chicago Board Options Exchange, The New York Stock Exchange, The Pacific Stock Exchange and The Philadelphia Stock Exchange.

In addition to ordinary options, you can now get LEAPS® (Long-term Equity AnticiPation Securities) which offer long-term options with expiration dates up to two and a half years in the future. (Standard equity options have a life of up to eight months.)

Remember, however, options involve risk and are not for every investor. Your broker or other financial advisor can help you determine if they're a good option for you.

Free Tapes And Booklets
You can learn more about options from the Options Industry Council by visiting Options Central, the OIC's internet web site. Investors can search by company name a database of more than 1,800 listed equity options for options symbols, stock and options prices and charts, as well as access up-to-date news, information and educational material.