Tag Archives for " Options "

Foundations: Breaking Down Options Part 2

Today we are continuing our options journey by taking a closer look at trading options. Since this is ​my first time completely through the Foundations of Stocks and Options class, options are still new territory for me. However, it is the territory which I plan to map out and learn as we progress through FOSO […]

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Foundations: Breaking Down Options

In our last FOSO blog, we dove back into the world of options by covering the concept of call and put options, which you can review here if you like. In short, you purchase call options for bullish trades and purchase put options for bearish trades. Building on that foundation, we will delve even deeper […]

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Foundations: The Two Types of Options

We introduced you to the concept of trading options back in classes 6 and 7 of Foundations of Stocks and Options Level 1, and you can do a refresh reading of those two blogs here and here if you like. But in short, one of the best reasons for learning to trade options is their […]

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Foundations: The Anatomy of Options

In our last blog, we introduced the concept of stock options and how trading them is similar to trading stocks. If you are long on a stock, you will need to use a call option. If you are short on a stock, you will need to use a put option. The main principles are the […]

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Foundations: Introduction to Stock Options

When it comes to stock trading, there are two main approaches; you can either buy a stock and sell it when it increases in value, or you can short a stock and take your profits as the price of the stock drops. In both cases, you are dealing with transactions of actual shares of a […]

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An Overview of Options

Options are perhaps best thought of as the name implies, as a tool which gives their owner options. Since the market has both buying and selling activities, we also have options associated with each transaction:Options that give you the right to buy are named Call Options.Options that give you the right to sell are named […]

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The Hidden Danger of Buying Call Options

Options are relatively simple to learn and extremely exciting from which to profit. Unfortunately, they also come saddled with a couple secrets most traders never take time to understand in the shape of implied volatility and vega. Now, imagine you are sitting at your computer looking over your stock portfolio. As you sit there, you check […]

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Lower Your Risk with Stock Options

Stock options are a great tool for many outcomes. We can use them to get better leverage on a trade, create more consistent profits, bring in cash during a stagnant market, hedge positions, and the list of uses goes on.Let’s Look At SPYIt’s easy to look at a trade like this SPY trade and think, […]

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Supercharge Your Trades Selling Options

Opinions can be quite polarizing, particularly in the world of trading. When it comes to options, there are those who believe options should be traded and those who believe they should not. It’s just the way things are! For the most part, option traders are convinced options provide the best opportunity to make a large profit […]

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The Good, the Bad, and the Ugly Truth about Options

Most active traders have heard fantastic tales of how such and such trader used stock options and made 300% or more in just two weeks. These stories are common among option traders. However, just as common are the stories about people who bought a stock option and lost everything. The result is a fairly divided set […]

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