Options Trading For Beginners: Your Trading Strategy Guide

RADICALFIRE.COM Learn more

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.

[{"selector":"#anim-7e6410b7-5482-4a31-b2aa-32c30b6777ed","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-398347a4-d08a-48bc-b539-af7e442d94a0","keyframes":{"transform":["translate3d(99.15254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Options Trading For Beginners: Basic Strategies

[{"selector":"#anim-c81c9c4e-4249-4482-ae3f-529a2b5f35c7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-05cb2dfb-0c86-4fad-9871-f6173b54cc82","keyframes":{"transform":["translate3d(108.61538%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Buying Puts (Long Puts)

[{"selector":"#anim-b2a84d04-08b9-4d7f-bbc2-53f0a34fbd72","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7368238e-1db9-4eab-abea-2eda07ae777d","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 01 The term “long” can be confusing in this context, but it just refers to the act of the trader buying an option. Learn more

Short Put

[{"selector":"#anim-9d5cf2fd-0c9f-4552-969b-a361808e62f6","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-30385aac-f9c7-42ad-88d5-b6e5a2162bc2","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 02 The maximum profit for the short put strategy is the premium price paid on the put. Learn more

Protective Puts

[{"selector":"#anim-bd8bf5a0-7e35-4bda-a8c8-d75cc9ec65bc","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ebd5d4de-36d5-47a5-bef4-b92124703b17","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 03 Traders still long on a stock or security but want to protect their downside may consider protective puts. Learn more

Covered Calls

[{"selector":"#anim-d0e46963-aabb-4852-9df9-cee1b1e28e03","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7889dbd9-2090-4339-bdcb-d96b87bed755","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 04 A covered call is when an investor owns underlying security and then sells call options on them. Learn more

Buying Calls

[{"selector":"#anim-969894a9-bf09-4dc0-9590-9ec2524f92b7","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-755d3c55-75ad-42b8-a5e9-db33f5bbf370","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 05 Most investors buying calls are using it to add leverage to their portfolios because purchasing the right over a certain number of stocks Learn more

FOR MORE ABOUT THIS POST, VISIT RADICAL FIRE

[{"selector":"#anim-24bf61ae-1d49-42b6-a9a5-89ac1d582c8d","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22c3b1ac-ecd8-45c0-b4d4-1259a49899f6","keyframes":{"transform":["translate3d(99.15254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4b54af02-4cf9-4200-a610-da5ead508e01","keyframes":{"transform":["translate3d(-116.88312%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a6ba3ade-5094-4c29-9642-33854edcb095","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-598ffd6a-3c8f-4d8f-8b6f-c8cc868b6aa5","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Learn more

Other stories

[{"selector":"#anim-cec2f1e3-6db9-4a1f-bdbf-4a1ab8702bff","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f5ac1450-67c7-4388-bb89-9e5f10d56784","keyframes":{"transform":["translate3d(-105.51725%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7fc88db7-8349-4e60-a97d-70a2becba94c","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bb90a047-11bd-4aa1-871e-8d2df37154fe","keyframes":{"transform":["translate3d(-105.51725%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-07dda75e-de24-4d1c-8937-f3e1882c333d","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-15d60e4a-00f2-4aad-9555-78671b21755f","keyframes":{"opacity":[0,1]},"delay":1200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5f2c9fcb-fed3-4b83-861f-e8a85702766b","keyframes":{"transform":["translate3d(-105.51725%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ea808785-0ce8-4b92-a90a-7ee1900ccd04","keyframes":{"opacity":[0,1]},"delay":1400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d1f9faf6-3040-49b0-ba9e-0359991a366c","keyframes":{"transform":["translate3d(-105.51725%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cf29dd42-98d6-480f-b32e-31559a19eba8","keyframes":{"opacity":[0,1]},"delay":1500,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]