For many beginners, there is the perception that options trading is beyond their ability. With a fundamental understanding of options trading, though, beginners can engage in this potentially lucrative strategy.
The key point for beginners to understand about options trading is that they are not purchasing a particular financial product, but rather the right to purchase or sell that product at a specific price. If you suspect that a stock is about to start declining, you can pay a premium for the right to sell the stock at a higher price. Beginners should keep in mind that they do not need to own a stock in order to trade the options.
A System for Beginners to Start Trading Options
For beginners who already understand the basics of trading options, the difficulty may be evaluating the price of an options contract to decide whether it is worth selling. While there are sophisticated techniques you can use to derive the value of an option, the Optioneer method can simplify the process. Our system provides users with two key measures they can use to guide their investing decisions.
In addition to providing investors with a measure of risk, our program also indicates the probability that you will be able to profit from a contract. After mastering our program, you will need just minutes a day to evaluate your investment options and make better decisions. For more information about our method or to attend a free seminar, contact us at 800-845-2502 or reach us by email at info@optioneer.com.
The risk of loss in trading commodity futures and options can be substantial. Before trading, you should carefully consider your financial position to determine if futures trading is appropriate. When trading futures and/or options, it is possible to lose the full balance of your account. It is also possible to lose more than your initial deposit when trading futures and/or granting/writing options. As a result, selling/writing "uncovered" options exposes the seller/writer to the possibility of margin calls and virtually unlimited risk. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results.
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