Options Trading Tutorial

What is option trading and how is that different from stock trading?

Public Comments

1. Option trading is done in "contracts". One contract equals 100 shares of the stock. It gives traders and investors "more bang for the buck". Options give the trader and the investor the right, but not the obligation to buy the stock. You can get basic knowledge and information about options by going to a free site. http://optionseducation.org The site sort-of "spoon feeds" information to those interested in learning about trading options. Calls are bought and sold when a trader or investor concludes or anticipates the stock will rise. Puts are bought and sold when a trader or investor concludes or anticipates the stock will go down. Another free site: http://investopedia.com . It’s recognized by Y! A as a "Featured Knowledge Partner". As you are doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before.. You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopedia’s dictionary. It probably won’t be long when you’ll feel you’re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name!
2. You can request a free dvd that explains how to trade options. It's conducted by aussie self made millionaire, Jamie McIntyre who trades options. You can request it here: http://www.thewealthage.com/freedvd_ebook.php
3. It is just what it says. You buy (or sell) the option, or right to buy or sell the underlying stock. You can then trade the option (buy or sell to close), exercise it (pay the balance of the money and take-up the underlying shares, or just let the option lapse )at no further cost). Get a book, a good one is Trading in Options by Geoffrey Chamberlain; Also look at CFDs see http://www.shareworld.co.uk/articles/cfd.htm