What is Options Trading?

An option trading is trading of stock options over the exchange. Options can be bought or sold like stocks. You can take positions using options for an upside, downside or sideways movement in any stocks or in the market. The potential of making profit with options trading is over 10-15 times more than buying stocks where you would have to invest bigger amount of capital. Options trading can be done with smaller capital compare to stocks trading which are buying calls (if you think a stock will go up) or put (if you think a stock will go down). Example- If you want to buy an Apple stock, you have to pay 450$ which is very expensive, you can take same position to trade Aaple in options for 1.00$(100$)+/per contract (calls or put) and be able to take a position in aaple’s stock to play for the upside or downside in that stock. You can open an account with an online broker and start options trading.

How can you become an options trader and advantage of options trading?

Anyone can become an options trader long as you know how to trade stocks, you should be able to do options trading. It requires a lot of study to become an options trader. Options educations include how the price of options are decided, options Greeks, options expiration, time decay , volatility and much more.

What is the difference between Stock and options trading?

Stock trading requires lots of capital. Options trading can be done with smaller amounts. Stock trading is the buying or selling of stocks. Options trading are much more complex as there are so many factors that decide the price movements of the options. Stocks can be only bought or sold, options strategies can be done for upside, downside or sideways movements in the market.

How much money you need to be a options trader?

You can open an account for 2k-5k to trade options, but if you want to do unlimited day trading and do all complex strategies you need to have 25 k in your account, that is a day trading rule in USA and Canada. For a beginner, you can open a cash account with 2k in your account and start learning options trading!

Options trading Strategies!

There are various options trading strategies, as simple as buying call options if you think a stock will go up and put options if you think a stock will go down. There are other kinds of smart strategies you can take even if you think if a stock will remain in sideways or range bounds. Names of a few of the strategies are- Debit spread, Credit spread, Calendar spread, Condor spread, bullish risk reversal, butterflies etc.

Options trading Risk/ Rewards!

Options trading can be very risky and rewarding. If you take positions and stock moves in your way you can make huge gains in a little time, at the same time if the market moves against you, it can turn into a loss. Managing options positions and timing is very important to be successful. We provide Options trading Coaching & Trading setup's through our Chat room every day, Contact us if you want to become an Options Trader