Getting Started

Reading option prices takes a bit of getting used to, but even beginners find that it doesn’t take long to catch on to what they are seeing. Without being able to read option prices accurately, option traders might not clearly understand what they are getting into,...

Options can be either considered at the money, in the money, or out of the money. You can tell which ones are which when you look at the option chain.    Calls are in the money when they have a strike price below the current price of the stock.  Puts are in...

One of the most successful investment professionals in the world today spoke these wise words: “Some people with high IQs are terrible investors because they've got terrible temperaments. That is why we say that having a certain kind of temperament is more...

Option trading is structured to allow traders and investors the ability to leverage their money. This makes option contracts a good tool for hedging or protecting large stock positions. That same leverage also makes them tools for speculation. The growing...

Option trading is done through a brokerage account. Brokers have become quite innovative. Almost all brokers allow for trading stocks, ETFs and options as well. However, not all account holders know how to activate option trading on their account.    A new...