Options trading can increase the profits you make when trading Stocks if you understand how to use them and know what you are doing. Options can be a very useful tool that the average investor can use to enhance their returns.
This article - Options Trading Basics, looks at what options are and discusses some of the options trading strategies traders can use with these versatile instruments.
Options - An Overview
Options give the buyer the right, but not the obligation, to buy (a call option) or sell (a put option) the underlying Stock or futures contract at a specified price up until a specified date.
In other words, options are like tradable insurance contracts.
An investor can purchase a Futures trading Put option as insurance against a decline in the Stock price or a Call option in case the Stock rises. Buying an option gives the purchaser time to decide whether they will buy or sell the underlying Stock. The price is locked in until the expiry date, which in the case of LEAPS can be years into the future.
Last Edited by williamjanes642 on Dec 01, 2022 1:09 PM
