Part 1 Ride The Big Moves Introduction to Options Trading
Options trading is one of the most fascinating and flexible instruments in the financial market. It allows traders and investors to speculate, hedge, and generate income — all from the same market tool.
An option is a financial derivative — meaning its value is derived from an underlying asset, such as stocks, indices, commodities, or currencies. Options are contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a specific price (called the strike price) before or on a particular date (called the expiry date).
In essence, options trading helps investors control large positions with relatively smaller amounts of capital while limiting risk when used correctly.
