Guide on Understanding Options, Options Trading, and the Trading Strategies!

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optionDash Guide on Understanding Options,
Options Trading, and the Trading Strategies!

• Website- optiondash.comEmail
  support_at_optiondash.com

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What is optionDash?
OptionDash organizes stock and option data to
rank covered call trades based on various filters
and criteria. Our goal is to provide the best
covered call screener on the internet. Since
2002, we have taught investors how to manage a
portfolio of covered calls. We also manage
portfolios for our clients that do not want to
control their accounts. Financial education and
do-it-yourself investments are pillars of our
companies investment philosophies. optionDash
offers a free covered call screener tool for
income investors.

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  support_at_optiondash.com

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What Are Options?
Equity-listed options are a written contract
between a buyer and a seller. They state that
the buyer will have the right but is not
obligated to buy or sell an asset at a
predetermined price before the expiration of the
contract. Option buyers have the right to buy
shares of stock with a call option and the right
to sell shares of stock with a put option. Each
option has a predetermined Strike Price and
Expiration. Option sellers collect a premium
from the buyer in exchange for the obligation to
buy or sell the stock. The option seller keeps
the premium whether the option is exercised or
expires worthless to the buyer.

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  support_at_optiondash.com

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What is Options Trading?


With calls and puts, buying and selling, options
trading can quickly sound overwhelming. It will
become even more complex combining multiple
options together. Today, we want to focus on the
basics and whats appropriate for new option
traders. While it can seem complicated in the
beginning, you will soon begin to understand that
trading with options is not only easy but can
fetch a decent profit. You can use an
options premium screener to determine profit
trades. optionDash is a great tool to do just
that! See for yourself.

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What Are Option Trading Types?

• Were looking at identifying the two types of
  options trading
• The European Option can only be exercised when
  you reach the expiry date. Equity indices use
  this type of options.
• The American Option can be exercised at any point
  as long as it falls before the expiry date. This
  includes exchange-traded funds and stocks.
• Neither of these has anything to do with the
  region you trade from.

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Options Trading Strategies
The trick to being a great options trader is to
get the basics right. There are a lot of
strategies out there that can help you in
trading. Lets take a look at some of the most
common strategies used by options traders

• Married Puts
• To implement the married puts strategy, one will
  first have to buy an asset and then purchase a
  put option for the same number of shares of the
  asset. When you do this, you get the right to
  sell off the stock at the strike price giving you
  downside protection.Although theres an
  unlimited potential to gain profit, your losses
  are limited once the stock price drops below the
  puts strike price.

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  support_at_optiondash.com

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Options Trading Strategies
The trick to being a great options trader is to
get the basics right. There are a lot of
strategies out there that can help you in
trading. Lets take a look at some of the most
common strategies used by options traders
2. Covered Calls The beautiful thing about the
covered calls strategy is that it has two parts
to it. One, where you buy an underlying asset
and two, where you sell call options for the same
asset you just bought. You can earn a profit by
selling call options as long as the price of the
stock does not go beyond the strike price. You
can read more about covered calls here.

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  support_at_optiondash.com

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Options Trading Strategies
The trick to being a great options trader is to
get the basics right. There are a lot of
strategies out there that can help you in
trading. Lets take a look at some of the most
common strategies used by options traders
3. Long Straddle If you were to purchase a long
call and long put option for the stocks of the
same asset, at the same time, same strike price
and expiration date, then youd be using the long
straddle strategy. Your goal with this strategy
will be to gain a profit when a stock makes a
strong move up or down in the market. In most
cases, the long straddle is used when a
newsworthy event happens.

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Few Things You Must Keep In Mind

• When trading in options, start your search with
  an options premium screener. You will take a
  calculated risk by taking into consideration the
  various probabilities and statistics of the
  market. Make sure youre also taking into account
  the volatility of the market, historical and
  implied.
• Youre going to be trading on different
  underlying securities, like indexes, equities, or
  ETFs.
• Read more about the commonly used terms in
  trading. Youre going to tap into the world of
  buying and selling of calls and puts, which could
  be short or long. They could also be at-the,
  in-the, or out-of-the-money.
• Options trading can only begin when you establish
  your financial goals.

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  support_at_optiondash.com

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Conclusion
Keep making efforts to learn and gain experience
while trading and investing. If youre not
putting in the time and energy to do so, you
might fall short of the knowledge required to get
desired profits. Options trading can be simple
and fetch incredible profits when understood
properly. Theres no need to be afraid of it or
intimidated by it. Remember what youve read and
inferred! And if youre in need of help,
optionDash has a screener to get you started.
Good luck!

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  -options-and-what-is-options-trading/

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THANK YOUBy

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