Effective November 23, 2009, 7:00 am EST, Jellybean Penny Options will be added to the JB STOCK FUND. All option (PUTS or CALLS) transactions will be based on 5 options, representing 500 shares of the underlying stock and valued less than $2.00. Therefore, most of the options are considered “out-of-the-money” and carry substantial risk of losing all the invested capital committed to the option. Before considering option trading, consult with your investment adviser and review information on the subject.

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An  option is a contract between a buyer and a seller that gives the buyer the right, but not the obligation, to buy or to sell a particular asset (the underlying asset) on or before the option’s expiration time, at an agreed price, the strike price. In return for granting the option, the seller collects a payment (the premium) from the buyer. A call option gives the buyer the right to buy the underlying asset and a put option gives the buyer of the option the right to sell the underlying asset. If the buyer chooses to exercise this right, the seller is obliged to sell or buy the asset at the agreed price.^[1][2] The buyer may choose not to exercise the right and let it expire. The underlying asset can be a piece of property, a security (stock or bond), or a derivative instrument, such as a futures contract.