This is a two-part series on how to trade options. In continuation from the last post where the definition of terms and reasons of trading options were laid out, this post will now show you the different types of options.

Options Trading Types

Options can be classified to 2 types: Call option and Put option. A call option entitles the holder of the option the right but not the obligation to buy the stock at an agreed date for an agreed price. A put option, on the other hand, entitles the holder of the option the right but not the obligation to sell the stock at an agreed date for an agreed price. The holder in this case is the buyer of the options contract. Therefore, how to trade options of each type would be as follows:

Call Option: Buy – means that you are wanting to buy the stock at a specified date for a strike price

Call Option: Sell – means that you are wanting to sell the stock you own at a specified date for a strike price

Put Option: Buy – means that you are wanting to sell the stock you own at a specified date for a strike price

Put Option: Sell - means that you are wanting to buy the stock at a specified date for a strike price

When you buy an option, you have to pay a premium to the seller of the option. Regardless of whether you are able to exercise the option (to buy or sell the stock), the premium is held by the seller of the option. This premium amount is determined by the market price, and has some mathematical formula used to calculate its value. The formula is not that simple, but there are key factors which contribute to the pricing of the options premium. This is not something for beginners to look at on how to trade options. I generally don’t look so much into the pricing model, as it can be complicated, but it pays to know the concepts. If you would like more information about the option pricing model and how to trade options by looking at these figures, it is explained better with Planet Wealth’s education program.

For now, you would have hopefully learned how to trade options in terms of the 2 types of options. Watch out for part 2 for the next installment of how to trade options.

Understanding Options Trading – Key to Success

When it comes to Options Trading, the key is knowledge and experience in order to succeed. Many people have tried to get into making money on the options market, but a lot of them have lost money instead and started touting options trading to be very risky and to be avoided. Well, it is true that there is risk involved in options trading. However, that risk can be mitigated if you know how to approach options trading and use the right strategies. One great thing that I have found is that having someone to guide me and show me the ropes when it comes to options trading made learning much easier for me and improved my success rate. I signed up to the services of a financial education and investment company called Planet Wealth, which I recommend for their expertise and great quality of service.

Who is Planet Wealth

Planet Wealth, the company I have been learning options trading from (and launching in the US very soon), has been in operation for over 8 years, and the owners and partners of this organisation actually are real options traders themselves. It started out as an educational company for options trading in Australia by Andrew Dmitri, a successful options trader and a couple of his other friends who are also successful options traders. They have started trading options since the late 90s, and have achieve fantastic results. Since then, they have wanted to share their knowledge to those who want to be successful financially, and there came about Planet Wealth.

Planet Wealth guides its students step-by-step on how to trade options, and also offers the ability to copy the trades that these traders do on their own accounts. They have walked the talk since they started, and whatever trades they recommend to their clients, they also trade it themselves for their own money. The exciting news is that they have partnered with one of the most successful options traders in the US, and are now launching in the US! Understanding options trading will even be much easier and accessible to those who live in the US with the launch of Planet Wealth US.

Copying Trades From The Experts

Now, making money with options trading is becoming more of a reality with the guidance and expertise at Planet Wealth US. Just when you say you don’t have time to monitor your trades and look at the market, Planet Wealth has gone a step further in trying to help people succeed in the financial markets. They offer an auto-trader service wherein all their trades on their own personal accounts will be copied and replicated in the same way in your account. Thus, you can be assured that they have their best interests at heart in that they will not trade something that they don’t think will work or be profitable. Of course, there is always the risk of having losing trades, but their expertise in options trading will help you in minimizing that and maximizing the returns on your investment.

Understanding Options Trading With Planet Wealth is not rocket science. It is that easy. You have the option to learn through their education program and be guided by them until you become more confident, and you also have the option to copy their trades automatically as it happens. Your likelihood of success in options trading will accelerate with Planet Wealth US.