How to Trade Options – Basics for Beginners, Calls and Puts

Novice Investors: How Options Work, Basic Stock Options Concepts and Terminology, Supportive, Experienced Teacher

Created by: Patricia Saylor
Teaching Novice Investors

What Will I Learn?

• Develop a solid foundational understanding of options.
• Understand the difference between call and puts.
• See how the passage of time helps options sellers and costs buyers.
• Create a personal list of terminology for discussing options trading.
• Evaluate strike prices and expiration dates for options contracts.
• Understand the importance of using collateral to secure contracts.
• Be prepared to take the next steps and begin trading.
• Learn the two types of options and the 4 ways to trade them.

Requirements

• Some familiarity with the stock market and how it works.
• If you do not know how to buy and sell stocks and funds, start with my Novice Investors Introduction to the Stock Market.
• Have at least $5000 to invest in a single company or ETF.
• Not yet ready to commit $5000? Practice with a paper trading account.

Target audience

• Stock market investors who are novice options traders.
• Investors, not gamblers.
• Those deciding whether to add options to their investment portfolios.
• Options traders who want a deeper understanding of their trading decisions.
• People with a self-managed account.
• Investors who want to take a more hands-on approach to managing their their own money.
• Investors who want to discuss options with their wealth managers.
• Parents who want to pass generational wealth and knowledge to their teens or college students, and who want to learn together.