Part 1: Introduction If you want to learn about stock option trading, you’re in the right place. My name is Amanda and in the next few minutes, I’ll introduce you to stock option trading and tell you how you can learn more through Raging Bull’s Options Academy. Perhaps you’ve asked yourself, “What does it mean…

Part 2: How Option Prices Change When the stock market is open, the value of an option contract can change continuously. The way the value changes is important to understand, because option prices move differently from stock prices. Stocks have one single factor that moves share prices around, but an option contract has three different…

Call Options: A Chance to Own Stock. When a trader buys a call option contract, they buy the chance to own shares they bought at the strike price on or before the expiration date. The contract gives you the right to take that chance if you want, or to let the contract expire. For most…

Introduction to Trading Styles One of the most successful investment professionals in the world today spoke these wise words: “Some people with high IQs are terrible investors because they’ve got terrible temperaments. That is why we say that having a certain kind of temperament is more important than brains.” Think about that. According to Charlie…

Part 4: Put Options: A Chance to Sell Short. When a trader buys a put option contract, they buy the chance to create a short-sale of a stock at the strike price. This short-sale opportunity will only be available until the option expires. Selling short allows a trader to profit when stocks go down. A…