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Options Tutorial All In One Article! Bookmark

Options for Beginners

Recently I've had a rather unexpected increase in the amount of folks asking me about options.  I think the reason is simple, with so many stocks trading at insane prices, people are thinking that maybe going the option route makes more sense...but they're afraid of them. So for the next few issues we're going to break down common options and make it so that anyone can understand them. ( AND NOT FEAR THEM!) Basic options are just a trading tool and anyone can use them once you understand them.

For those of you who are new to the concept of options, take heart. Everyone started out just like you with no idea of what these things really are. For years the common thoughts were that options were for the "big boys" only and the "big boys" tried their best to keep it that way. Years ago I remember analysts saying that the average person shouldn't even think about trading options because he couldn't ever really understand the workings. Baloney! There is no reason that the average investor shouldn't use the tools available to make money in the market and options are some very important tools. So right off the bat, get it out of your mind that options are too advanced or too anything for you to understand. They are simply another investment tool, and if you understand how they work, and use them correctly, they will put money in your accounts.

12.10.2014 Financial Intelligence Report Bookmark

What's a Put???

Because of an increased interest in “stock options” lately, we’ve been doing a bit of an introduction to options recently.  On Sunday we explored the idea of what they are and how they function. We discussed the fact that options are no more risky than stocks, and how you shouldn’t be afraid of them at all. They’re simply another tool to use in trading. Then we talked about the basic “call” option.

Today we’re going to look at the other side of the coin, which is called a “put” option.

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