Options Basics

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…

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…

In “Introduction to Options Trading,” we laid the groundwork for understanding options trading. Now, it’s time to dive deeper into the two fundamental types of options: call options and put options. By the end of this chapter, you’ll have a clear understanding of how each type works and the scenarios in which they are typically…

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…