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Auto Trading through our Top Trades Program
Myth: Options Are Too Complicated
This is nonsense! In many ways, learning to trade options is easier than learning to trade stocks. Think of it like this; there are only two types of options, puts and calls. Puts allow you to bet that the price on a security is going down, and calls allow you to make money when the price of of your equity goes up. Pretty simple, right? And if you limit the number of securities on which you trade options, you make things even easier on yourself.
An option is a contract that gives the owner the right to buy or sell a specific underlying security, for a certain price, for a set period of time. Each contract usually relates to 100 shares of stock; 1 contract = 100 shares, 5 contracts = 500 shares, 10 contracts = 1,000 shares, and so forth. In general, there are just two types of options; calls and puts.
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