💹STOCKS FULL GUIDE💹
I have a lot of requests for a stocks gu..
🕑 Added 2022-07-23 22:34:34 +0000 UTC
💹STOCKS FULL GUIDE💹
I have a lot of requests for a stocks guide I decided to create one with all of my own personal resources for beginners. I hope this helps.
DISCLAIMER: I am by no means a stock market expert. I only know the basics, and that is what is translated over from crypto. However, I do also know the technicalities. Here are some resources I found useful and the basics explained in my own words.
🖤*What Is a Stock Option?*
A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. There are two types of options: puts, which is a bet that a stock will fall, or calls, which is a bet that a stock will rise. Because it has shares of stock (or a stock index) as its underlying asset, stock options are a form of equity derivative and may be called equity options.
Options are a type of financial instrument known as a derivative—their worth is based on or derived from, the value of an underlying security or asset. In the case of stock options, that asset is shares of a company's stock. Essentially, the option is a contract, an agreement between two parties to sell/buy the stock; the option contract sets the date of the transaction (usually a few months into the future) and the price.
When a contract is written, it determines the price that the underlying stock must reach in order to be "in the money", known as the strike price. An option's value is determined by the difference between the underlying stock price and the strike price (exercise price).
Video to explain: https://www.youtube.com/watch?v=VJgHkAqohbU
OPTIONS TRAINING GUIDE
If you are new to Options trading, please give these three highly recommended video a watch. Take notes on these components:
What are Calls?
What are Puts?
When do contracts expire?
What is a strike price?
What are Greeks?
How does a trader profit?
What are ATM contracts?
What are ITM Contracts?
What are OTM Contracts?
https://youtu.be/7PM4rNDr4oI
https://youtu.be/SD7sw0bf1ms
https://youtu.be/ZJjRnKpwDyw
Here are links on how to use different brokerages to place options trades.
https://www.youtube.com/watch?v=bDaomLo9R50
https://www.youtube.com/watch?v=iMJV-gkfZYU
https://www.youtube.com/watch?v=Qt0Je9GKtKc
https://www.youtube.com/watch?v=VhQX0YLx9OY
