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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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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Why Do Stock Options Seem So Risky?

When it comes to the subject of stock options, we are often met with heavy resistance. For many people there is a sense of fear trading stocks options as they are perceived as being risky. However, the bottom line is stock options are a decaying asset which essentially means they are time-sensitive investing instrument which […]

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Trading Options, Are You Set Up to Fail Before You Start?

Trading options is one of the most efficient ways trade the market. The built-in leverage options provide allows a trader to lower their capital requirements, decrease their risk, and increase their ROI. However, while options do provide great leverage and are a very flexible instrument for trading, they are not always a walk in the […]

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How Options Can Lose Money, Even When You’re Right!

Have you ever bought options, watched the stock do exactly what you expected, and gone back to sell only to discover it is now worthless? Option pricing can be a bit complicated and as a result, can sometimes leave traders feeling a bit frustrated by the fact they just lost money on a trade they […]

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