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Options Trading

The first—and perhaps biggest—challenge of options trading is understanding what an option is.

An option is a contract giving you the right, but not the obligation, to buy or sell a specific security at a specific price over a specific period of time. After that period of time has elapsed (known as “expiration day”), the option ceases to exist.

A call option gives you the right to buy the security.

A put option gives you the right to sell the security.


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Options Trading Post Archives
Broad indexes are down double-digit percentages this year, will a Santa Claus rally turn around the end of 2022?
Let me tell you about the greatest options trade I saw in my 10 years on the Chicago Board of Options Exchange - and what I learned from it.
The right options income strategies can help you generate yield in any market. Here’s how to use “The Wheel” on your favorite stocks.
Elevated volatility for all of 2022 has made these resilient, non-directional options strategies even more profitable for investors.
PTON and SNAP are two beaten-down growth stocks with great products and terrible charts. Here’s how I’d play a long-term rebound in each.
Overbought conditions in a popular and highly liquid ETF are setting the stage to deploy one of my favorite options strategies.
You may not consider yourself a professional trader, but these options strategies can help you manage your portfolio just like the pros.
This simple strategy for trading options can lead to steady income and the possibility for high share appreciation in blue-chip stocks.
The options market is vastly different now than it once was, thanks to computers. You can’t compete with algorithms, so what do you do?
Buying call options in beaten down stocks is one way to play an eventual rebound. Here’s how I’d approach it with AMZN & AAPL.
Even in this year’s tumultuous environment this options trading strategy has allowed me to significantly outperform the market. Here’s how.
With increasing market volatility, it’s worth considering how you can hedge your portfolio using options to protect gains and prevent losses.
No strategies can eliminate risk entirely, but this is one of the safest options strategies to protect profitable positions from volatility.
By using LEAPS options you can add portfolio exposure to this undervalued spin-off company for half the price of buying shares.
Few people have heard of covered strangles. But they’re a great way to make four times as much income on a trade - especially in this market.