Option alpha pdf7/24/2023 ![]() You, as the buyer now, have the RIGHT to purchase this stock at this “lock-in” price anytime during the validity of the contract ( HORIZON). ![]() When you are an option buyer, you PAY a premium to “lock in” the stock price of an underlying stock. However, when it comes to options, there are possibly even more traders who are selling options vs. They rarely sell stocks “short” (ie selling stocks that they do not own). Most investors are only familiar with stock buying. In the world of options, you can select to be a buyer or seller. Knowing these 4 basic options trading strategies will be sufficient for a beginner options trader to start making profits, both in a bullish and bearish environment.īefore I delve into these four beginner-friendly options strategies, let me briefly run through the very basics of options buying and sellingĪdditional Reading: 3 Safe Options Strategies better than stock buying Basics of options In this article, I will look to introduce 4 option trading strategies for beginners. As long as one comprehends the fundamentals associated with these basic options strategies, it is sufficient to generate a consistent stream of profit. Very often, the simplest strategies work the best. The truth is that you do not need to know these fanciful and complex options strategies to make money. ![]() There are many different ways in which one can trade options, ranging from simple strategies to the more complicated ones, the latter often with fanciful names associated with birds and insects (Iron condor, butterfly, anyone?) Options are one of the most popular trading vehicles that can result in you making (or losing) money fast. Join our Youtube channel for short and sweet videos on all things finance! Join our Instagram channel for more tidbits on all things finance! I do post interesting articles on FB from time to time that might not be covered here in this website. Do Like Me on Facebook if you enjoy reading the various investment and personal finance articles at New Academy of Finance.
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