Options contracts may seem complicated, but they're really not.
What is an options contract?
It's simply a financial instrument that investors of all types can use to predict the market's moves or hedge their portfolios.
What Is an Option Contract?
options trading
Article Index
Why You're Better Off Trading Options Than Buying Stock on a Trump Tweet
These days, it looks like a simple tweet from the president can send the market spiraling down or surging higher.
Wall Street has found its answer by introducing an index that measures the impact of those tweets, called "Volfefe."
That sounds like the right idea in this new era. But it doesn't quite tell the whole story.
When to Use a Call Option vs. a Put Option
Even experienced investors sometimes have trouble deciding when to use a call option vs. a put option.
But there are always options trading strategies they can use as guidelines.
And they're easier than you might think.You owe it to yourself and your wealth to take a closer look at trading options as part of your well-rounded investment strategy.
Profit from the General Motors Strike with These Options Trading Basics
Some investors are going to make a killing from GM's latest movement.
And they don't even have to hold any stock at all.
That's because they know a few options trading basics.
And the more certain you are of a stock's movement, the more profitable your options trade can be.
One of Our Options Strategies Just Made You 200%
On August 29, we recommended an options strategy to take advantage of the latest spate of bad news swirling around a fallen American legend: General Electric Co.
It banked you 199.1% in less than a month. Here's how one of our best options strategies can keep working in your favor.
How to Learn Options Trading and Retire Early
President Franklin D. Roosevelt famously said, "The only thing we have to fear is fear itself."
He was promoting optimism in the Great Depression.
But this still applies to investors today. Do not fear the markets.
Do not fear the news cycle. And do not fear using options.
These can help you grab your retirement by the horns and settle down with a fortune.
What Is a Covered Call in Options Trading?
Anyone can get make money trading options.
Today, we're not only going to show you how this is possible, but we're also going to get you started with a specific options trade: the "covered call."
So what is a covered call in options trading?
Call options give the holder the right, but not the obligation, to buy shares of the underlying stock at a fixed price by a certain date.
If you think the market is going up, you want to own calls.
How to Find the Best Stocks for Options Trading After Labor Day
One of the most important characteristics of the stock market is that there are identifiable patterns that appear from very short-term intraday to the long-term of decades or more.
That's why holidays tend to make such a great time for trades.
Labor Day is no exception, which is why we're going to show you how to find the best stocks for options trading as traders come back from the holiday weekend.
How to Get Approved for Options Trading
Getting started trading options is easier than you think.
As soon as we show you how to get approved for options trading by your broker, you'll be buying, selling, and exercising options in no time.
Here's just how easy it is to get started...
These Simple Options Trading Strategies Can Earn You up to 10x What Stocks Can
Options trading only looks complicated because there's no one way to do it.
But if you can find simple options trading strategies to follow, it can be as straightforward as stock trading.
Today, we're taking it a step further to show a couple ways you can maximize profits trading options.
How Do Stock Options Work?
Stock options work by giving you the right to own shares of a stock at a fixed price by a specific date.
While options trading can be lucrative and even reduce your risk, learning how to trade options can be a hurdle for many traders.
Fortunately, it doesn't have to be...
What Is the Difference Between a Call and a Put?
You won't get very far trading options without knowing the difference between a call and a put and how they work to make you money.
But if you know that an options contract allows you to buy or sell underlying shares of a stock, you're only a step away.
The next thing to know is whether you want to buy a "call" option or a "put" option.
And that's what we're going to show you today.
Use Options Trading Strategies to Cash In on GE Stock
If there is one hard lesson many investors have to learn, it is that cheap stocks can get even cheaper.
That has been the case with the fallen blue-chip angel General Electric Co. (NYSE: GE).
But by using the right options trading strategies, you can profit no matter which direction the stock turns.
Options Trading for Beginners: How to Get Started and Make Money with Options
A good options trade can bank 100% in profit from a 10% gain in stock price. But it can be tricky getting started.
So we wanted to share our guide with you, "Options Trading for Beginners: How to Get Started and Make Money with Options."
There's also one small piece of advice we want to share, something even experts forget often.
It can make or break an investor, so stay tuned...
What Is Binary Options Trading?
You may have seen the TV ads for binary options trading and wondered if it was something you should do.
We encourage you to learn about this type of options trading vehicle and will explain them to you below.
But we also want you to see that it is not the best way to make money.