Options Trading for Beginners

By Luke Steward

Would you like to achieve financial freedom, live the life you deserve, and have more time for yourself and your family, or stop working for a boss who always demands more?

If the answer is "YES", then keep reading…

This book was specifically designed to make you able to successfully trade to finally reach your financial independence, starting from an initial approach on options trading so you can know and understand all the basic terminology, up to the best, proven tips to succeed in this online world.

Here is what you will find in this guide:

• What are Options, and How They Work
• How Different Types of Options are Classified
• How to Avoid the Top Mistakes Done by New Option Traders
• Trading Vocabulary explained
• … & Much More!

If you want to become a successful options trader, believe me when I say that this is the only guide you'll need.

• Language: English
• Publisher: Luke Steward
• Release date: Feb 8, 2022
• ISBN: 9781393139263

Book preview

© Copyright 2021 by Luke Stewart- All rights reserved.

The following Book is reproduced below with the goal of providing information that is as accurate and reliable as possible. Regardless, purchasing this Book can be seen as consent to the fact that both the publisher and the author of this book are in no way experts on the topics discussed within and that any recommendations or suggestions that are made herein are for entertainment purposes only. Professionals should be consulted as needed prior to undertaking any of the action endorsed herein.

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Contents

Introduction

The Basics of Options

Options as Derivatives

Call and Put Options

Options Expiration and Liquidity

What You Need to Know as a Beginner

Why Options Trading

Types of Options

The Risks

Benefits of Trading

Call Options

Put Options

How to Earn a Profit with the Call Options and Put Options

What are Options Styles?

American Options

European Options

Exotic Options

Bermuda Options

Barrier Options

Basket Options

Capped-Style Options

Compound Options

Look-Back Options

Asian Options

Binary Options

Forward Start Options

LEAPS

Index Options

FAQs

Benefits of Options Trading

Speculation

Idea

Diversification

Income Generation

Learn How to Read Options Symbols

Brokerage Levels

Level 1

Level 2

Level 3

Level 4

Reasons That Options Are Great for Investing

Options Are Flexible

Lower Startup Costs

Gain Leverage

Low Risk

Tips For Getting Started on Options Trading

Create A Brokerage Account

Get Approval to Trade Options

Start with Paper Trading

Join A Forum of Traders of Like Minds Online

Think Of Other Strategies for Trading Options

Know More About the Greeks

Brokers and Trading Platforms

The Two Different Types of Brokers

The Types of Standard Brokers

The Costs of Hiring a Broker and Operating Successfully

Knowing About the Hidden Withdrawal Fees

Understanding Complex Fee Structures With Brokers

E*TRADE

Positives to E*TRADE

Negatives to E*TRADE

E*TRADE for the Beginner

Interactive Brokers

Positives to Interactive Brokers

Negative to Interactive Brokers

Interactive Brokers for the Beginner

TradeStation

Positives to TradeStation

Negatives to TradeStation

TradeStation for the Beginner

TD Ameritrade

Positives to TD Ameritrade

Negatives to TD Ameritrade

TD Ameritrade for the Beginner

Buying an Options Contract

Basic and Intermediate Trading Strategies

Buying Calls the Long Call

Buying Puts the Long Put

Short Put

Covered Call

Married Put

Protective Put

Covered Call Strategies in Depth

Risks and Rewards of Covered Calls

Advanced Trading Strategies

Bull Call Spread

Bear Put Spread

Long Straddle

Long Strangle

Synthetic Long

6 Small Account Option Trading Tips

Use the Proper Risk for the Size of Your Account.

Don't Be Tempted to Withdraw

Amplify Your Trading Strategies

Focus on Your Trading Process

Backtesting

Beta Testing

Live Trading

Add a Few More Strategies

Conclusion

Introduction

Experts in the industry say that options trading is not as popular as stocks trading. Also, most people, even long-time investors don’t know much about options trading. 

In this book, we are going to give you a crash course on what options trading is all about. You will be educated about common terminologies, how trading goes, and how you can be successful at it. 

This book will guide you and help you navigate through different types of options and the effective strategies involved to earn sizeable amounts of profits. Learning and understanding options trading are important not just for sophisticated investors but also for newbie traders and investors who want to strengthen their investment profile. 

Options trading may be complicated but with this book, newbies and beginners in options trading will have an effective tool to help them succeed in trading. 

We hope that through this book, we can give you and other beginners a better understanding of options trading. 

Now, let’s begin with your journey. 

The Basics