In this article I’ll go back to options trading basics. If you are a new option trader, or interested in seeing what option trading has to offer, these will be for you. Short articles like this are not going to take you from zero to amazing as an option trader. For that, you need serious education, but I can give you a taste of what the option market is like.
First let’s define what options are. For our purposes, options are trading instruments that can be bought and sold using online trading platforms, through organized options exchanges. They are things that we can buy low and sell high. In this way, they are like stocks.
Options, however, have some unique characteristics that are decidedly “un-stock-like”. These special...