TradeMaster: Stock Trading and
Investing Solution.
Welcome to Trademaster's comprehensive Options Trading Course, where we'll teach you how
to trade options like a pro and make consistent profits from the stock market.
We have designed this course to provide you with a deep understanding of options trading and
the most effective strategies to use. Our team of experienced traders will guide you through the
entire process, from understanding the basics of options trading to advanced options trading
strategies.
In this course, we'll cover everything you need to know about options trading, including the
various types of options, the risks and rewards associated with options trading, and how to
select the right options to trade. We'll also provide you with detailed insights into the psychology
of trading and how to manage your emotions when making trades.
At Trademaster, we believe that financial education is key to successful trading. That's why
we've designed this course to be both informative and engaging. We use real-world examples,
interactive quizzes, and other learning tools to make sure you understand the concepts and can
apply them in the real world.
So if you're ready to take your trading skills to the next level and make consistent profits from
options trading, then enroll in our course today. With Trademaster's Options Trading Course,
you'll have the knowledge and skills to succeed in the markets.
WHAT ARE OPTIONS/CALLS AND PUTS
There are two main types of options: call options and put options.
Call Options: A call option gives the buyer the right, but not the obligation, to buy an underlying
asset at a predetermined price, known as the strike price, on or before a specific date, known as
the expiration date. Call options are used when a trader believes that the price of the underlying
asset will rise in the future.
Put Options: A put option gives the buyer the right, but not the obligation, to sell an underlying
asset at a predetermined price, known as the strike price, on or before a specific date, known as
the expiration date. Put options are used when a trader believes that the price of the underlying
asset will fall in the future.
There are also other types of options that are variations of call and put options. Some of
these include:
American Options: American options can be exercised at any time before the expiration date.
This type of option provides greater flexibility to the option holder, but typically costs more than a
European option.
European Options: European options can only be exercised on the expiration date. These
options are typically less expensive than American options, but offer less flexibility.
Exotic Options: Exotic options have unique features that differ from traditional call and put
options. These can include barrier options, which only become active once the underlying asset
reaches a certain price, and binary options, which pay a fixed amount if the underlying asset
reaches a predetermined price.
Stock Options: Stock options are options that are based on individual stocks, rather than on an
index or other asset class. These options are typically traded on stock exchanges and are
commonly used as part of employee compensation packages.
Overall, the type of option that is most appropriate for a trader will depend on their individual
trading goals and market expectations.
COVERED CALLS
A covered call is a popular options trading strategy that involves selling call options against a
long position in an underlying asset, such as a stock or an ETF. The trader who sells the call
option is known as the option writer, while the buyer of the option is known as the option holder.
In a covered call strategy, the trader will hold a long position in the underlying asset and
simultaneously sell a call option with a strike price above the current market price of the asset.
This means that if the price of the underlying asset rises above the strike price of the call option,
the option holder can exercise the option and buy the underlying asset at the lower strike price,
which may result in a loss for the option writer.
However, if the price of the underlying asset does not rise above the strike price of the call
option, the option writer keeps the premium paid by the option holder and continues to hold the
underlying asset. This premium can provide a source of income for the trader, even if the price
of the underlying asset remains flat or slightly decreases.
The main advantage of the covered call strategy is that it can provide a way to generate income
from an existing long position in an underlying asset, while also reducing the overall risk of the
position. By selling call options against the long position, the trader can offset some of the
potential downside risk of the underlying asset, as the premium collected from selling the call
option provides a cushion against potential losses.
In summary, a covered call strategy can provide traders with a way to generate income from an
existing long position in an underlying asset, while also reducing the overall risk of the position.
However, it's important to note that this strategy does come with some risks, and traders should
carefully consider their individual goals and market expectations before using this strategy.
Stock Name
Ticker
Annualized Avg. Return
Apple Inc.
AAPL
4.4%
Amazon.com Inc.
AMZN
2.2%
Facebook Inc.
FB
4.4%
Microsoft Corporation
MSFT
3.3%
Alphabet Inc.
GOOGL
3.3%
Tesla Inc.
TSLA
11.7%
Coca-Cola Co.
KO
2.9%
Procter & Gamble Co.
PG
2.6%
Johnson & Johnson
JNJ
2.7%
AT&T Inc.
T
7.1%
Intel Corporation
INTC
4.6%
General Electric Company
GE
7.6%
Verizon Communications Inc.
VZ
4.2%
Pfizer Inc.
PFE
4.4%
3.6%
Cisco Systems Inc.
CSCO