People are eager to begin making money. To achieve that goal, trading options is your best option. Most people associate options with risk when they consider trading. They’re risky, but only for those who trade them incorrectly, visit us.
Stock Options are used as a way to increase leverage and manage risk. When you understand the simple strategies taught by my mentors, they can be profitable.
Both calls and puts fall under the umbrella of options. Option can be used in two ways: you can buy the option or sell it. It is called covered calls. The strategy consists of two separate positions.
If you are long the underlying asset xyz that is traded at $15.00, you can sell a put option on it to earn money.
Get 100 shares for $15, sell one call contract with 15 strikes (equivalent to 100 stock shares), and get $1 each or $100 in total.
A xyz stock trading over $14.00 will earn you money when the contract expires. Your stocks can go down and you still earn money!
The option to buy shares will be sold at $15 and you keep the $100 collected.
* By purchasing a “call option”, you can purchase the underlying asset at an agreed price and for a defined period.
When selling a Call Option, the seller is obligated within certain time limits to sell a particular Underlying at a predetermined price.
Buy a “put” option and you will have the ability to sell certain underlyings at certain prices for certain periods of time.
* By selling put options you agree to purchase an underlying asset at a predetermined price over a defined period.
This is probably confusing for you if it’s your first experience with options. Trading options allows you to earn money faster.
With the sale of options, you’ll be able to start earning money right away.
If you want to make it in trading, then giving yourself an extra edge is key. This can be achieved through different selling options strategies. Most options will expire useless. Wer makes the majority of money? The answer is option sellers.