To The Moon

Day3：Options strategies for beginners

Four basic trading strategies：buy call / buy put / sell call / sell put

1. You can open a position by either buying or selling an option.

2. The option buyer can choose to close the position in advance or exercise the option upon expiration. The exercise of stock options requires sufficient margin; out of the money options are generally worthless upon expiration.

3. Selling a call requires a higher margin, and there is no upper limit on the loss. The loss of selling a put is the strike price minus the current price, minus the premium,and then multiplied by the number of corresponding shares. If the current price is 0 in extreme cases, the biggest loss is the strike price multiplied by the number of corresponding shares, and minus the earned premium.

Options are known as the pearl on the crown of financial derivatives. Not only can options navigate through bull and bear markets, but also through volatile markets. There are profitable strategies for options in all market conditions.

The course will cover from the most basic options concepts to options trading strategies, allowing you to easily learn options investing skills.