Stock Options Trading - Put And Call Options Value

If you take the 3 major stock exchanges in the USA, that is the:

  • New York Stock Exchange (NYSE)
  • American Stock Exchange (AMEX)
  • NASDAQ (North American.....)

There are about 10,000 companies listed on these 3 exchanges, of these approximately 3,000 have options that you can buy and sell.

Put And Call Options

You should remember that there are ONLY 3 types of options, Calls and Puts, but there are at least 26 options trading strategies that can be used, just remember that these strategies all use a combination of calls and puts, no matter how complicated the strategy is.

Options Strategies

There are generally 2 types of trades that can used with options, directional and non directional. With directional you need to become a very good stock trader 1st or there is a very good chance you will lose all your money sooner or later. This is because simple directional trades using calls or puts are highly leveraged and can loose their value quickly if you don't time it right.

Non directional option strategies rely more on the time decay parameter of options and don't rely on you picking the direction of the trade, however you do need to understand, and use good money management principals in these trades or again you can lose a lot of money.

It really will pay you off in the long term to take your time to learn about options and paper trade until you are very confident that you can consistently make money. The easiest way is to read a good selection of trading books over a period of time, just one bad trade will cost you much more than a whole bunch of trading books.

 

 

 

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Stock Options Trading - Put And Call Options Value