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...

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...

Introduction to Trading Approaches Just like a professional athlete would not approach their sport without a plan for how to perform, Option traders who want to be successful need a game plan. This game plan has three elements: selecting a trading approach,...

How to Read Option Prices Reading option prices takes a bit of getting used to, but even beginners find that it doesn’t take long to catch on to what they are seeing. Without being able to read option prices accurately, option traders might not clearly understand...

Option trading is structured to allow traders and investors the ability to leverage their money. This makes options a more effective instrument for investors to hedge or protect large stock positions they may be holding. That same leverage also makes it possible...