OPTIONS TRADING STRATEGIES

An option is a contract that allows the holder to either buy or sell an asset at a predetermined price on or before a specific date.

With futures, you have to buy that date on the contract. With an option, you have a choice. If the underlying asset doesn't do what you would like it to, you can walk away without purchasing or selling. You will lose the premium you paid at the beginning, but this can be a lot less expensive than exercising the whole contract.

The buyer will pay a premium for the options contract, and it is possible to lose initial investment pending on how the asset performs, based on several factors. We will spend a lot of time talking about options in this guidebook, so don't let this scare you.

When applied correctly, options provide significant advantages over other investment options. They offer small investors the opportunity to trade a more significant exposure with a small amount of capital, similar to the investment levels required with penny stocks. They allow unlimited profit potential. Most importantly, they're flexible. A seasoned investor with a smart plan and an understanding of the options trade can react in a variety of ways depending on how they perform. This makes options a powerful investment tool that will serve you well if you take the time to learn the ins and outs.

So, what are you waiting for? Buy now and let's make your way to financial freedom