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.
Make Big Profits with Growth Stocks
Cabot Growth Investor is our flagship investment advisory. Published since 1970, this advisory has helped countless investors grow their wealth. Get weekly updates about stocks recommended in our legendary Model Portfolio!
Options Trading Post Archives
Contrary to popular belief, options trading is a good way to reduce risk. Weekly options? That’s more akin to a roll of the dice.
Options trading has its own vernacular and to get started with the basics, it’s important to be familiar with options trading terminology.
In the interest of making options trading more accessible for beginners, here are a few strategies (and Advisories) to consider starting with.
My subscribers and I have made a lot of money trading options of late. Which begs the question: who is on the losing end of these trades?
The market has entered something of a choppy correction. But if you know how to use covered calls, you can boost your profits quickly.
Iron condors are a low-risk, yield-creating options strategy to net a quick profit. Here’s how to execute an iron condor trade.
Options trading may seem like it’s riskier than buying stock but selling LEAPs can actually reduce the overall risk in a position.
Since launching Cabot Options Institute Quant Trader almost two years ago, our win rate has been above 80%. Here’s how we did it.
Options order flow can be a highly bullish signal for the underlying stock, especially when you see oversized trades that really stand out.
They say everything’s bigger in Texas, and that even applies to trading. Here’s the story behind the “Texas Hedge” and how to use it.
Wall Street seems divided on Tesla stock on the heels of a massive run. Here’s how to put a bullish or bearish options trade on TSLA.
Over the long run, it pays to be bullish, and with a disciplined trading strategy, you can beat the market... just like we have for the last few years.
On top of being the #1 investment strategy for 2024, this is one of my all-time favorite, tried and true investing strategies.
Cabot offers two very different options trading services to better serve a variety of investors. Here are the differences you need to know.
Just one year-end trade could net you a quick 12.4%, beating what the S&P 500 has done all year. Here’s how it works.