Stock Options Introduction
This stock options introduction is all about making stock option investing easier and profitable for you as an investor.
Everyday options are traded within the stock market and most professionals are using stock options to benefit and reap huge rewards! Investors typically use stock options to hedge, or generate additional income, while others, or shall we say traders, use them as speculation.
Learning stock options and even the stock market has it’s hurdles and is at times complex. However I am hoping to change that for my readers, and followers! If you’re a beginner and new to the stock market, I want you to drop the idea of buying shares of ANYTHING and do this! SELL PUT OPTIONS!
Selling stock options isn’t for everyone nor can everyone pick up on the strategy. However I am going to tell you that by selling PUTS, you will earn a credit before buying or taking out a debit! Who wouldn’t want to make money instead of buy? That’s the whole idea on investing in the first place.
In addition to understanding options, we must know that they decay over time, unlike buying shares of a company and holding onto them forever, or until they go bankrupt.
To tackle the concept of trading options, I will break things down over a few articles to better serve you and to make things as easy as possible when it comes to this whole investing stuff! I will then introduce a number of strategies that you can use when it comes to investing with options and when to use each one.
So knowing that options decay over time, why would investors use stock options? First off, options can be used to manage risks or by speculating a stock decrease. This acts as a hedge or insurance on your stock.
Next, options can be used for bullish, bearish or even neutral trades. As you can see, options are used in a variety of market conditions and are very powerful when used correctly. Stock options can be invested or traded in a up or down market along with a sideways market! This allows confidence in investing and for many, is unknown. Therefor leaving many bashing market volatility or declining markets, telling people to take out your cash and invest in their products.
Options strategies vary and the number of varieties are a bit complex. Some leave investors with high risk to reward ratios, while leaving others with low risk, low reward options. The power is up to you on how you define your rewards and risk profiles!
With this, investors can have a number of investment strategies right up their sleeves when it comes to options. They can buy calls, sell puts, or they can buy puts and sell calls along with other things like Iron Condors where the range is neither bullish nor bearish but in between.
Regardless of your investing strategy and desire to profit, I hope this article has helped and please comment down below on your thoughts and whether or not you knew about stock options!