If you're looking to start trading options but don't know where to start, in this article we discuss fundamental definitions, different strategies and provide you with actionable advice.

Like stocks, however, options are traded on exchanges and individual investors can place orders to buy and sell through a brokerage firm. Options trading isn’t new.

Understanding Options Trading Strategies 1. Long Call – Capture Outsized Gains from Higher Stock Prices This is one of the preferred strategies for traders who are bullish. This means you are betting ...

D ay trading options is a popular strategy for traders who seek to take advantage of short-term market fluctuations. Options are financial derivatives that give the holder the right, but not the ...

An option is out-of-the-money when the security is trading at a higher value in the market as compared to the strike price. It is rarely recommended to sell an option that is out-of-the-money.

Example: Stock X is trading for $20 per share, and a call with a strike price of $20 and expiration in four months is trading at $1. The contract pays a premium of $100, or one contract * $1 * 100 ...

4. Best for Intermediate Trading Strategies: Sky View Trading For options traders looking for advanced options strategy videos, Sky View Trading claims to have proven methods for making money ...

- Put Options: These give the holder the right to sell the underlying asset. Day trading options focuses on exploiting short-term price movements within a single trading session.

Find the best options trading tools for strategy building, multileg orders and risk management. Compare platforms like Benzinga Pro, Interactive Brokers, TradeStation, Tastytrade and Thinkorswim.

Rho (ρ) in options trading measures the predicted change in an option’s value given a 1% change in interest rates (risk-free). So, it shows traders how interest rate changes impact option prices.