What Is Options Trading? All You Need To Know
Aug 25, 2022
What is Options Trading?
From the strike, to expiration, to calls and puts, I'm here to give you a break down and tell you what is options trading once and for all. You'll learn what it means to be an options trader and how you can get started with this powerful tool for investing!
Options trading is one of the best kept secrets for making money even in a down market. In fact, I thrive when the stock market is going down (and make good money when it's going up).
But first you need to learn some key terms to begin your journey.
Key Terms for Options Trading
OPTIONS: Financial derivatives that give the buyer the right to buy or sell the underlying asset at a stated price within a specified period.
STRIKE: The agreed upon price you are willing to pay and the other party is will accept.
EXPIRATION: The last day the agreement is valid. By that date you will have to decide to buy or not to buy the land.
PREMIUM: A fee that the buyer pays for the right to buy at a pre-set price when the contract’s time limit expires.
EXERCISE A CONTRACT: To Exercise you put into effect the right to buy or sell the underlying security that is specified in the options contract.
I hope you found this useful to discover what is options trading! See you next week!
Want to:
☑️ Have confidence in making trade decisions for yourself?
☑️ Create wealth even in the most volatile markets?
☑️ Have peace of mind about your financial future?
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