What are Options? They are a contract that is sold to one trader, the option writer to another trader, the option holder. The contract gives the buyer the right but not the obligation to buy sell the security on the agreed price; the strike price. All contracts (options) will expire on a certain date.

Calls - gives the right to buy.
Puts - gives the right to sell.

We are looking for a price drop in Goldman Sachs' shares and on that, we are recommending that traders buy puts to profit from any drop in the stock.

Trade recommendation on Shanda Interactive. We are recommending either a short position in the stock, or buying puts.