Option Basics – Getting Started

Getting Started With Options

[text_block style=”style_1.png” align=”left” font_size=”20″ font_font=”Myriad%20Pro” font_style=”normal” font_color=”%23666″ line_height=”24″]Options can seem daunting, confusing and in many cases, downright impossible.  We hear the same questions over and over.

We have created this video repository so we can answer the questions we are asked the most often.  This is our very helpful FAQ.

If you’ve never traded a single contract, you probably don’t know the difference between a put or a call, a condor or a straddle.  In this video series, we walk through some very basic trading questions… Enjoy.  Let us know what you think.[/text_block]

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Why Should I Trade Options over Stocks?

Options can be risky but can also provide substantial opportunities to profit for those who properly use this very flexible and powerful financial instrument.[/text_block]

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What Is The Difference Between Puts and Calls?

If a call is the right to buy, a put is the option to sell the underlying stock at a predetermined strike price until a fixed expiry date. The put buyer has the right to sell shares at the strike price, and if he/she decides to sell, the put writer is obliged to buy at that price.[/text_block]

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Why Is The Vix Important?

Easily the most misunderstood term casually tossed around by pros and amateurs.  Knowing what the VIX has to do with pricing of options is the key to successfully pocketing profits…[/text_block]

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What Are LEAPs?

LEAP’s are not all that different from other options, but there is one fundamental characteristic that sets them apart: their expiration date is further out in the future. This is a big advantage for investors, as it tends to be easier to forecast long-term trends in stock prices.[/text_block]

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What Are Weekly Options?

This date, known as the expiration date, is the lone differentiator between Weeklys and traditional options, and is critical to understanding how weekly options work. As their name suggests, Weeklys expire every week, typically on Fridays at market close.[/text_block]

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How Does Leverage Work In Options Trading?

To achieve higher returns, besides doing more homework on the companies you wish to buy, it is often necessary to take on higher risk. Here is how it is applied when trading options.[/text_block]

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What Do Traders Use Advanced Option Strategies?

Options offer traders a great deal of flexibility to craft a position with unique reward-to-risk characteristics. Alert traders who know what to look for and who are willing and able to act to adjust a trade or cut a loss if the need arises, may be able to find many high probability possibilities.[/text_block]

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Some Great Trading Strategies To Get Started

In your quest for the best option strategies, the biggest potential mistake you want to eliminate beforehand is adopting a trading or investing philosophy that doesn’t actually suit you. Here are some that might…[/text_block]