WHAT ARE OPTIONS CONTRACTS? CALLS AND PUTS OPTION TRADING FOR BEGINNERS 2018
What are options, option trading, and option contracts in the stock market in 2018? Option Trading for Beginners 2018 will answer these questions and more with an explained in depth video and examples. How do you trade options? Today I will go over and explain options and options contracts, and more importantly, go over the question how do you trade options for beginners? These are all questions asked time and time again by newer investors who have heard about the term options or option contracts, but haven’t ever looked into it due to its perceived high risk and complexity. Options are different from stocks, but work in similar ways to stocks. In this video I break down what options are and give you an analogy to better understand them and see their true potential if traded and invested properly.
In options, there are 3 main terms to understand – ITM (in the money), ATM (at the money), and OTM (out of the money). There are more complex terms like the Greeks used, but that will be in another video. If you understand these 3 terms (ITM, ATM, OTM), you will have a better understanding of what options are and how investors trade them. Everyone has different reasons and strategies for trading options (LEAPs, Hedging, or just simply to make as much money as possible as soon as possible), but the bottom like is that it is a High Risk, High Reward tool – but it doesn’t hurt to know it and play it in a certain way that helps you.
I will be making a follow up video on how to read an option chain, so if you would like to see this, I’d appreciate a LIKE on this video and a comment down below letting me know that you do!
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Disclaimer: None of the stocks, options, or securities that I discuss should be taken as advice or recommendations to buy/sell/hold. The views and information presented in these videos is strictly for educational purposes and I will not be held liable for your gains or losses incurred due to trading, investing, or getting involved in the stock market.
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