What is Options Trading?
Options trading involves contracts that give traders the right, but not the obligation, to buy or sell an asset at a specific price before a certain date.
Call and Put Options
A Call option allows you to buy an asset, while a Put option allows you to sell. These are the foundation of all options strategies.
Basic Strategies
Beginners can start with simple strategies like buying calls, buying puts, and covered calls to understand market behavior.
Advanced Strategies
Advanced traders use strategies like straddles, strangles, iron condors, and spreads to manage risk and maximize returns.
Risk Management
Options trading carries risk, so proper position sizing, stop-loss, and understanding volatility are essential for long-term success.