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What Is Selling Options?

In the previous blogs, we covered the fundamentals of options trading, including the mechanics of buying call and put options. Now, let’s dive into the world of selling options, a strategy that can be employed to generate income, hedge positions, and take advantage of time decay. In this chapter, we’ll explore selling call and put…

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What Is Buying Options?

In the previous blog posts, we’ve explored the basics of options trading, including what options are and how they work. Now, it’s time to delve into buying options, which is a popular strategy among traders seeking to profit from price movements in the underlying asset. In this post, we’ll discuss two fundamental strategies for buying…

Charting Basics

Understanding Candlestick Charts: A Beginner’s Guide

  In the world of investing and trading, data is king. But raw data alone is like a pile of uncut gems – valuable, yet overwhelming. This is where candlestick charts come into play, turning data into a story that even beginners can understand and use to make informed trading decisions. What are Candlestick Charts?…

Charting Basics

Developing Competency In Technical Analysis And Charting

Technical analysis is a method used to evaluate and forecast the future price movements of financial securities, like stocks, options, bonds, and derivatives, based on past market data, primarily price and volume. The following is a summary and description of key elements of technical analysis: Price Patterns and Trends: Technical analysts believe that historical price…

Options Basics

How Options Differ From Stocks

Every investor, new or experienced will ask this question when they come across options for the first time. If you’re new to the financial markets, you might have heard of stocks, more than options, but both are popular investment vehicles. While they share some common ground, they are fundamentally different in several key ways. Understanding…

Options Basics

The Mechanics Of Options Trading

To become a successful options trader, it’s essential to understand the fundamental mechanics of options trading. In this chapter, we will explore the key components that make up options contracts, including option premiums, strike prices, expiration dates, and contract sizes. Option Premiums An option premium is the price you pay (or receive) for an options…

Options Basics

A Beginner’s Guide To Options Trading

Welcome to the world of options trading! We’ll embark on a journey to demystify the exciting and versatile realm of options trading. Whether you’re a complete novice or someone with a basic understanding of financial markets, we’ll start from the ground up and build a strong foundation for your options trading journey. Some concepts may…