Options Trading Strategies: A Guide for Beginners - Deepstash
Definition and application

Options are conditional derivative contracts that allow buyers of the contracts (option holders) to buy or sell a security at a cho...

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Options Trading Strategies: A Guide for Beginners

investopedia.com

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Forms of trading

Options are divided into "call" and "put" options. With a call option, the buyer of the contract purchases the right to buy

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There are some advantages to trading options. The Chicago Board of Options Exchange (CBOE) is the largest such exchange in the world, offering options on a wide variety of single s...

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Suppose a trader wants to invest $5,000 in Apple (AAPL), trading around $165 per share. With this amount, they can purch...

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Buying Puts (Long Put)

A put option works the exact opposite way a call option does, with the put option gaining value as the price of the underlying decreases. While short-selling also allows a trader to profit from fal...

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A covered call strategy involves buying 100 shares of the underlying asset and selling a call option against those shares. When the trader sells the call, the option's premium is collected, thus lo...

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Suppose a trader buys 1,000 shares of BP (BP) at $44 per share and simultaneously writes 10 call options (one contract for...

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