Options Trading: Learn all About Trading Options
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Welcome to this options trading series that will teach you some introductory, although very important, aspects of options. This is what you can expect to learn with this nine part series 'Introduction to Options':
First, you will learn what the two basic types of options are: Calls and Puts. We will discuss why some will choose to trade options as opposed to other types of investments such as stocks or CFD’s. From there we dissect an option to see what components make it up and where our money is really going when we buy one.
Following this, we will look at a couple of actual options trading examples so you can see how a well trained investor can profit, but also how careless trading can make your capital disappear.
Then we get into pricing fundamentals, risks associated with this investment vehicle, and what to expect if you attend an options trading seminar.
The goal here is to separate the hype from the reality and provide you with real knowledge and skills that will assist you throughout your long and hopefully prosperous investment career.
10 Options Academy/articles
- Options Trading: Call Options Explained
Call Options Explained with example. Call gives you the right to buy a stock, but you are not obligated to do so. The contract is worth a certain amount of money which we will call extrinsic value.
- Options Trading: Put Options Explained
Put options are purchased when you feel the market is going to cool off. Let us go back to our real estate example that we started in part 1 to explain how a Put options contract works.
- Options Trading: Why Trade Options?
With so many different products on the market, why choose options? Here are a few compelling reasons: leverage, passive Income, risk management, diversification, small capital outlay
- Components of an Option
Learn about the components of an option. What are Underlying Asset, size of contract, expiration date, exercise price
- Understanding Option Pricing Fundamentals
Learn the fundamentals of options pricing. It is important that we clearly understand what factors go into an options premium or value. What is intrinsic value or time value?
- Options Trading Examples
We will now walk through an actual example of trading a call option and a put option. Going through will give us exposure to how a trade really works, and the profit versus risk of each
- Options Trading Strategies
Learn options trading strategies; covered call strategy to earn income, hedge to protect shares and use it to leverage
- Options Trading Risks
All investments carry risk. Although the risks are somewhat low in this example, the rewards are likewise comparative. What sorts of risks are associated with options trading?
- The Covered Call Strategy
The Covered Call Strategy is a simple and effective way to make money in the stock market that reduces current risk to share holders. It is straight-forward and lucrative for anyone who trades shares.
- Trading Options Seminars: What You Will Learn in a Teaser Seminar
Some may choose to buy a book and others prefer the person to person contact that can be had at an options trading seminar. What really takes place behind the closed doors of these elite training sessions?