Options For Beginners - Top 3 Strategies For Profit

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Best stock options strategies for beginners. BIG NEWS: I'm starting a new business shh: https://lazymoneyclub.beehiiv.com/subscribe Introduction: Stock Options There are four basic options trades you can make: buying a call option, selling a call option, buying a put option, and selling a put option. So buy calls, buy puts, sell calls or sell puts. It’s very important to note that when you enter into a contract there are always 2 parties involved. When you BUY a contract, you are buying it from the SELLER - the person on the OTHER side of the trade. When you SELL a contract - you are selling to the BUYER of the contract - and of course this will ALSO mean that when you BUY a contract you pay money (the premium) and when you SELL a contract you are getting paid, or collecting, money (the premium) Each of these contracts have certain characteristics. Each option contract has a strike price, expiration date and a premium price. Here are the 4 basic options trades one can make. BUYING A CALL : Gives the buyer the right (but not the obligation) to buy stock at a given strike price on or before the expiration date. You pay a premium to buy this option contract. BUYING A PUT: Gives the buyer the right (but not he obligation) to sell stock at a given strike price on or before the expiration date. Again you pay a premium to buy a put contract. SELLING A CALL : Gives the seller the obligation to sell shares at a given stock price on or before the expiration date. When you sell a call, you collect the premium for doing so. SELLING PUT: Gives the seller the obligation to buy shares at a given strike price on or before the expiration date. And again you are selling a put contract so you are receiving money - the premium for doing so.