Guide To Trading Options

While you may currently invest in mutual funds, bonds, and stocks, you may be able to further diversify your portfolio by following a guide to trading options. Unlike stocks and bonds, trading options does not provide you with a stake in a company. Rather, it provides you with the right to buy or sell financial instruments at predetermined prices.

A guide should discuss two main types of options: calls and puts. If you believe that a stock is positioned to increase over the next few months, you might buy a call, which lets you buy stocks at a potentially lower price. On the other hand, if you believe the stock is on its way down, you can buy a put that allows the owner to sell stocks at a higher price.

An Online Guide to Trading Options

By trading options of investments that you believe are going to move over time, you can earn a profit while managing your risk. When trading options:

  • You pay a premium for the right to buy or sell an investment at a predetermined price.
  • If you do not exercise the option before the expiration date, your contract will lapse and if your options are out of the money, the options become worthless.
  • The Optioneer system provides you with an online trading guide, effectively giving you recommendations based on the likelihood that you can profit from an option position while managing the risk involved in the investment.

The Optioneer method uses a custom-designed algorithm to help guide your investing. Instead of spending hours researching the value of trading specific options, you can use the system with some practice and just minutes a day. For more information about our system, call us at 800-845-2502 or contact us at info@optioneer.com.