LYCOS RETRIEVER 
Option Investing
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A measurement used to understand the total level of investment by the market in a given option. Open interest ... indicates the liquidity in a given option, or the likelihood of being able to execute a large transaction quickly without changing the price of the option. A contract is "open" when it has been sold by a market maker to a customer, or sold by a customer to a market maker. If the seller reverses the transaction (an option owner sells the contract, or the option seller buys the contract back), that interest is "closed."
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Prior to buying or selling an option, a person should read and understand the Characteristics and Risks of Standardized Options. Hard copies of this document may be obtained by either clicking the link above or contacting Zecco Trading at customerservice@zeccotrading.com. For more information you may ... contact the Options Clearing Corporation at One North Wacker Dr., Suite 500 Chicago, IL 60606 (1-800-678-4667).
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The High Equity Option provides a blend of domestic and international securities mutual funds which, may provide greater investment return opportunities over the long-term when compared to an investment option with lower exposure to equities. Given the higher volatility of this option, the risk of loss can be greater over a shorter investment horizon.
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Example: In anticipation of declining prices, you invest $800 (the equivalent of $8 an ounce) to buy a 100-ounce gold put option with a strike price of $500 an ounce. For the option to become profitable at expiration, the price of gold must decline below $492. For each $1 an ounce it declines below that amount, your profit is $100.
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This Investment Option ... invests in the same underlying Funds as the Managed Allocation Option. However, the initial contributions to this Investment Option are more heavily invested in equities and real estate than in the Managed Allocation Option.
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Example: In anticipation of rising prices, you invest $800 (the equivalent of $8 an ounce) to buy a 100-ounce gold call option with a strike price of $500 an ounce. For the option to become profitable at expiration, the price of gold must climb above $508. For each $1 an ounce it increases above that amount, your profit is $100.
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Option Investing