Many people view the stock market as a gambling platform where they can either make a lot of money or lose everything they have. While there is some truth to this, the stock market is a very complex system that requires knowledge and understanding as well as the right stock options trading strategies to be successful.
Buying Call Options
A call option is an agreement that gives you the right to buy a stock at a specified price within a certain period. If you think the stock is going to go up, you would buy a call option.
Buying Put Options
A put option is an agreement that allows you to sell a stock at a specified price within a certain amount of time. If you think the stock is going to go down, you would buy a put option.
A covered call is when an investor sells a call option on an asset they already own such as shares, ETFs, or index funds. By selling calls on assets they own, investors receive an upfront payment in exchange for agreeing to sell their asset at a set price if called upon by their buyer before expiration.
Many different stock options trading strategies can be used when trading stocks and options. Each strategy has its own set of risks and rewards that should be considered before implementing it. Investing in stocks can be profitable if done correctly. It is important to do your research before making any decisions. For more information on the best stock options trading strategies, give us a call at Trade Genie today.