Options Trading: A Beginner’s Guide

Option trading is a type of trading strategy where investors give the right to buy or sell an underlying asset at a predetermined price within a certain time frame, but these contracts do not provide any obligation to buy or sell. These contracts are called options.

What is Option Trading ?

There are two main types of options: Call options and Put option

Type of Options   

Underlying Price,Option Premium,Intrinsic Value,Time Decay (Theta), Expiration Date,Strike Price, Implied Volatility.

Key Concepts in Option Trading

ITM-ITM stands for In the Money. OTM-OTM stands for Out of the Money. ATM- ATM stands for At the Money.

What Is ITM, OTM, ATM ?

There are many benefits in options trading. Like a Leverage,Flexibility,Risk Management

Benefits of Option Trading 

Covered Call,Protective Put,Long Call and Long Put 

Option Trading Strategies 

Long Straddle, Short Straddle,Long Strangle, Short Strangle, Short Strangle, Bull call & Bull Put Spread,Bear Call & Bear Put Spread, Iron Condor, Butterfly Strategy .

Some Advanced option Strategy 

Avoid Low Liquidity Options,Adapt Strategies,Start with Paper Trading,Risk Management.

Option Trading Tips For Complete Beginner

Read our blog to know in detail about Options Trading