PODCAST: Options Trading 101

Trading options can be a solid way to generate income when you have a smaller trading account – if you learn how to trade correctly. Listen and learn as trading coach Jerry Robinson shares an excerpt from the first installment of his five-hour Options Trading Course.

• Why learning to trade stocks before learning to trade options can be wise
• Why trade options?
• What exactly are options?
• Important differences between stock holders and option holders
• The difference between buying and selling an option
• There are two types of options: Calls and Puts
• Buying a call option comes with a right to buy the underlying at a predetermined price within a limited period of time
• Buying a put option gives you the right to sell the underlying at a predetermined price within a limited period of time
• All options have expiration dates and cease trading on the 3rd Friday of the month at 4pm EST
• One option contract controls 100 shares of the underlying in the U.S. equity markets
• The option buyer has a “right” and the option seller has an “obligation”
• These and many more concepts are covered in this educational segment
• Learn how to access Jerry Robinson’s 5-hour options trading video course at a special discounted price here .

Jerry closes out today’s show with a profound truth and warning that we all do well to heed.