An Options Education

Like many Americans, Mill Valley, Calif.'s Jacki Fromme began investing in stocks about two years ago as bull-market fever swept the country. She'd played mostly tech stocks. But in June she began wondering how best to use options.

Fromme was looking to options for leverage but wasn't on firm ground with the basics. She needed help on concepts that kept popping up whenever she read about puts and calls. Seeking some explanations and clarification, she wrote to the Options Forum. We were more than happy to help, and since we figure many of you have the same questions, we also decided to publish our correspondence with Jacki.

The back-and-forth should provide a good primer for other options newbies plus a refresher for the sophisticates among you. And if you've still got more questions, please send them, with your full name, to the Options Forum. ...