Options Trading For Beginners: Your Trading Strategy Guide

RADICALFIRE.COM

You might have heard about people making money by trading options and want to give it a shot but don’t know exactly what it is.

Options Trading  For Beginners:  Basic Strategies

01

Buying Puts (Long Puts)

The term “long” can be confusing in this context, but it just refers to the act of the trader buying an option.

02

Short Put

The maximum profit for the short put strategy is the premium price paid on the put.

03

Protective Puts

Traders still long on a stock or security but want to protect their downside may consider  protective puts.

04

Covered Calls

A covered call is when an investor owns underlying security and then sells call options on them.

05

Buying Calls

Most investors buying calls are using it to add leverage to their portfolios because purchasing the right over a certain number  of stocks

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