Learn about options trading, how it works and five basic option strategies.
An option is a contract giving you the right but not the obligation to buy or sell an asset at a specific price before a specific date. ; If the asset doesn't perform as hoped, the option just expires; you're only out the small premium you paid for it. ; Though low-risk, options do incur costs, and require careful timing and market-watching to succeed.
All the essential information an investor needs to understand how the options market works and how to start trading options.
How a Short Call Works A short call is a bearish trading strategy. The option seller, who is called the writer, believes that the price of the stock underlying the option will decrease....
by trading them. Index options are cash settled when exercised, as opposed to options on... To make a bet on the level of the index going up, an investor buys a call option outright. To...
Table of Contents ; What is Options Trading? · How Do Options Work? · 7 Steps to Trade Options
Options are a type of traded product that goes beyond simply buying or selling a stock. We cover the basics of what options are and how trading them can open you up to so many different… options.
Put Options and How to Trade Them ; What an Option Premium is ; What the Option Strike Price is
Options trading offers a myriad of benefits, one of which is leverage. One contract gives you the opportunity to control 100 shares of a stock at a fraction of the stock price. However, too many traders shy away from options trading, thinking they are “dangerous”. Today, let’s talk about how options trading leverage works – and how to take advantage of it to grow your wealth. Trading options is very difficult if you don’t have a strategy. If you’ve heard stories about investors getting wiped out quickly trading options, they likely ...
Learn how paper trading works, its benefits, limitations, and how it compares to live trading for beginners and experienced traders.