With a little education and the right tools, you’ll be trading options in no time.
While our focus at OptionAutomator is on Options Trading Technology and Tools, we do periodically write educational articles.
There are a lot of myths surrounding options trading. The options, by themselves, are not dangerous tools. The only dangerous part of options trading is the risk-insensitive trader who buys and sells options with little or no understanding of just what can go wrong. Options can be used for speculation, but also for hedging, protection, leverage etc. There is more than one way to make money with options. Here are some of the common myths and misconceptions about options trading.
Fund managers consistently fall short of overall market performance. However, proven successful, yet responsible options strategies continue to outperform. So the choice is yours.
Different options trading strategies entail different sets of criteria which must be balanced in order to yield success. Whether you are looking to profit or protect in a rising or falling market, or ride the fence with a neutral straddle or collar, knowing what you are looking to accomplish, what criteria need to be satisfied, and taking small, manageable positions is the best way to limit your capital risk, maximize your potential gain and learn from those strategies that do not quite pan out for you.
A cop out answer to this question is any option trading strategy that results in a profit! But certainly that is not the answer you are looking for, so let's go to a more detailed answer.
You want to get into options trading but are worried that options trading is “too risky”. You can control your risk with credit spreads
What is the Call Option Contract? The buyer has the right, but not the obligation, to purchase 100 shares of stock at a predetermined price at any point before expiration.
You want to get into options trading but are worried that options trading is "too risky". You can control your risk with spreads
You want to get into options trading but are worried that options trading is "too risky". You can control your risk with spreads.
Many Brokers, such as TD Ameritrade allow international trading on the U.S. Based Options Markets. The U.S. Options Markets are the largest and most liquid in the world.
Ever thought about getting started with options trading? In this article we’ll discuss why NOW is the best time to be an options trader!
