Archive for the ‘Options Trading Basics’ Category


Options trading involve a learning curve, so if a trader tries to invest his money into options without understanding the fundamentals of options trading then he might need to face the consequences of heavy losses. Therefore it’s advisable to learn the basics first before getting involved in trading. Below are some important Options Trading Tips [...]


Before a trader tries to design any strategy for trading options, it’s very essential for him/her to understand the fundamentals or basics of options trading. In this article we will try to learn the options trading basics by looking at some of the frequently asked questions. Below are some of the FAQ’s on Options Trading [...]


Option trading is quite different from trading in stocks. If the overall stock market is performing well then even very little or no knowledge about stocks can make a trader earn handsome profits. However, scenario is different with Options trading because options are quite complex to understand and if a trader invests in options without [...]


There is a learning curve involved before a trader starts trading options. To avoid the risk of losing huge amount of money one should try and learn the fundamentals and then trade options. Below is some of the important information for Option Trading beginners:
What are Options?
Option is a contract between a buyer and a seller [...]


We have discussed in earlier blog that options are quite a rewarding financial instrument however it has a potential to drag a trader into heavy losses if he/she doesn’t know what they are up to. For the same its better for a new trader to be aware about the fundamentals of options before he/she actually [...]


There are several ways for a trader to gain better knowledge about options trading if it’s a completely new financial instrument for him/her. Also as options trading is quite a rewarding financial instrument in the same manner it has a potential to drag a trader into heavy losses if he/she doesn’t know what they are [...]


Trading in Options without understanding the fundamentals can be dangerous for your investment portfolio. At times there are situations where traders buy call options and to square off their positions instead of selling call options they buy put options which can bring in losses for them. To avoid this kind of situations paper trading becomes [...]


Option is a contract which gives right and not an obligation to either buy or sell a particular underlying asset at a particular price before the contract end date. Since it’s just a contract to buy asset at a future date there is a premium associated with it and not the actual value of the [...]


Trading options has many benefits when compared to other investment vehicles. Option gives a trader liberty to invest in favor of a specific direction in which market will move. For example a trader can forecast that a financial security will be trading above or below a particular price 5 months from now and invest in [...]


While choosing a Financial Instrument one needs to take utmost care about all the upside and downside of that instrument. There are several financial instruments available in the market today, a trader can consider investing in stocks, commodity, currency, mutual funds, exchange traded funds, futures or options. In this article we will try and draw [...]


Options 101


Click Here To Know More

Options Trading 101 is one the best options trading course available in the market for beginners. It allows you to learn and study options trading at your own pace.

Option Trade Basics Podcast

Translator