What Option Types does exist

Before you begin trading options, you should know what exactly is a stock option and understand and what option types does exist. The two basic types of option contracts – puts and calls. Learn how they work and how to trade them for profits. There are two options types: calls and puts. You can buy them or sell it. When […]

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What is a stock option

Stock Option Contracts comes in several ways. In a typical option contract, the seller agrees to keep an offer open for a certain amount of time. A potential buyer has to give the seller some payment in exchange. In other words in an option contract, the seller is agreeing to keep the “option”open for the buyer. An option contract gives […]

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What is the Cost Basis

cost basis

Cost Basis can be best explained by the use of an everyday live example. Imagine that you are a broker who buys a house, renovate it and sell it for a higher amount. You have purchased the house for a certain amount of money. After that you will buy some paint and wall paper to do a make over. Then […]

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Your first Option Trade

What did we consider when we made our first trade? We trade options because they have better odds to realise a profit than with stocks. You have to look for the right  opportunities and have to decide whether we buy or sell options. We also look at other factors as Volume, liquidity, Implied Volatility, and Probability of Profit before we […]

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