Part8 Trading Master Class

Introduction to Options Trading
Options are like a financial “contract” that gives you rights but not obligations.
When you buy an option, you are buying the right to buy or sell an asset at a specific price before a certain date.
They’re mainly used in stocks, commodities, indexes, and currencies.

Two main types of options:

Call Option – Right to buy an asset at a set price.

Put Option – Right to sell an asset at a set price.

Key terms:

Strike Price – The price at which you can buy/sell the asset.

Expiration Date – The last day you can use the option.

Premium – Price paid to buy the option.

In the Money (ITM) – Option has intrinsic value.

Out of the Money (OTM) – Option has no intrinsic value yet.

At the Money (ATM) – Strike price equals current market price.

Options give traders flexibility, leverage, and hedging power. But with great power comes great “margin calls” if you misuse them.