Option trading
Sure! Here's a quick intro to options trading: What is Options Trading? Options trading involves buying and selling options contracts, which give you the right (but not the obligation) to buy or sell a stock at a specific price before a certain date. Two Basic Types of Options: 1. Call Option: Gives the right to buy an asset at a certain price (strike price). 2. Put Option: Gives the right to sell an asset at a certain price. Key Terms: Strike Price: The price at which you can buy/sell the underlying asset. Premium: The price you pay to buy the option. Expiration Date: The date the option expires. In the Money (ITM): When exercising the option would be profitable. Out of the Money (OTM): When exercising would lead to a loss. Basic Strategies: Buying Calls: You believe the stock will go up. Buying Puts: You believe the stock will go down. Covered Calls: You own the stock and sell call options to earn income. Spreads: Using multiple options to limit risk and reward. Would you like h...