Stock Options Basics is designed with you in mind, if you are challenged by some of the myths and have been lead to believe that stock options trading is too complicated and too risky, here you will learn the basic concepts that will help to dispel some of these myths and learn how to become a profitable options trader. 

Now may be the best time to become serious about learning to trade the right way and learn how to give your portfolio the strength it needs before taking the big step.  Trading the stock options market is not a get rich quick tool, if it were everyone would be doing it, making millions of dollars each trade.  But it can be profitable for anyone who is willing to put forth the effort and the time to learn the basics and how to properly structure options strategies.

My desire is to provide the basic information for beginners to learn how to get started and build on a proper foundation.  This website will provide some inside information, tools, and resources to help you in learning to trade stock options the correct way.

Objective:

1. To provide basic information on options trading.
2. Educate you to what traders are doing today.
3. Discuss the differences between trading the stock market and the options market.
4. Show a variety of option strategics that are currently being used in the market today. 
5. Provide different websites, blogs and other resources that are available, some are free and others at a cost.
6. Share some of the experiences that I have had in learning to trade the options market.

This topic will be of interest to those who are looking for information on options trading and also to those who have no idea what I am talking about.  Nevertheless, come go with me into the topic of: 
"Stock Options Basics". Together we will venture into the  UPS and DOWNS of the Options Market

LEARNING TO TRADE THE OPTION MARKET
When learning  to trade the options market it is important to test options trading strategies, before you begin to invest real money.  There are many virtual trading platforms that have been tested by professional traders with decade of experience, that have the same professional level tools with data and functionality of live platforms. 

The process is the same as a live trade, enter the order, track the simulated performances of your account, then take advantage of the innovative ideas generated, pay attention to the rick management tools including volatility assessments. 

This will allow you to practice your skills on this simulated platforms while experimenting with different stocks, different business sectors which will help to minimize future risk.

Most options houses will provide these virtual trading platforms as soon as you open an account. Usually the virtual money is at least $5,000 and you may be able to add more as you go and build your trading confidence.  This will allow you to turn your ideas into successful trades. 

Another area that is very important when learning to trade the options market.  n addition to learning the bid-ask prices of options it is equally important to learn how the Greeks affect options prices.  The Greeks are:

The Delta, the ratio comparing the change in the price of the stock to the price of the option.  An example of a delta in a call options would be, a delta of 0.50 means that for every $1 the stock increases, the call option will increase by $0.50.  The put options would have the opposite affect, decreasing by the same amount.

The Gamma, measures the rate of change in the delta with respect to the change in the stock price. 

The Vega, the amount that an option's price changes when volatility changes (movement in the stock) by 1% point.

The Theta, measures the rate of decline in the value of an option due to the passage of time. Theta can also be referred to as the time decay on the value of an option. Even if prices are held constant, the option will still lose value as time moves closer to the maturity of the option.

Below is a list of resource items that will assist in the training process to help you get off to the proper start of a successful options trading career.

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TOOLS FOR THE TRADE       

Go Ahead Visit The Market Club "Where Members Profit" 

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