I will explain option trading with real money examples and you’ll see why trading stock how to earn money in option trading is so profitable. Learn how to trade stock options through a simple 7 step process.
Discover five ways to achieve financial freedom in five years or less. If you’re frustrated with the technical and over-complicated online options trading tutorials, then I understand your frustrations. I never found anyone to explain option trading in simple terms so I eventually pieced together my own definition and that’s what I’m sharing with you today. In this lesson I will explain option trading so you can see why some people consistently double their money and others don’t. For the purposes of this lesson, I will only be referring to trading stock options, even though options can be traded on other securities such as commodities. A stock option is not a physical thing like owning shares in a company. Instead, it’s a contract between two parties.
When the company’s value goes up so does your shares price and then you have the opportunity to sell your stock shares at a higher price. Contract: an agreement made between two or more parties. It is no different than the contract you sign to buy a house or a contract you have with a lawyer or musician. How option traders make their money is the same way stock traders make their money. Once that happens they sell their shares for a profit. They then sell their contract at a higher price then what they paid.
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UNLIKE AN ACTUAL PERFORMANCE RECORD, to recap: Options have a Time Value associated with them. Otherwise known as Time Spreads or Calendar Spreads — futures and options are not suitable for all investors as the special risks inherent how to earn money in option trading options trading may expose investors to potentially rapid and substantial losses. I have no idea if options are even right for you, this spread contains a lot of variables. If things are still fuzzy no worries, sUCH AS LACK OF LIQUIDITY. THE RESULTS MAY HAVE UNDER, and by selling another Put Option of a higher strike price.
I am only referring to the buying side of options trading. There is a way to make money by purely selling stock options, but this tutorial only covers buying options. If things are still fuzzy no worries, I’ll explain option trading some more. That will help you gain a better understanding of how contracts can be traded for money. I don’t know what has brought you to my page.
Maybe you are interested in options to help you reduce the risk of your other stock market holdings. Maybe you are looking for a way to generate a little additional income for retirement. Or maybe you’ve just heard about options, you’re not sure what they are, and you want a simple step-by-step guide to understanding them and getting started with them. I have no idea if options are even right for you, but I do promise to show you what has worked for me and the exact steps I’ve taken to use them to earn additional income, protect my investments, and to experience freedom in my life. The Options Trading Group, Inc.