Options Calls vs Puts... and How Do They Work?

📺 Welcome to today's episode of Options 101, where we delve into the basics of options trading! 📈📉 In this beginner-friendly segment, we focus on understanding the fundamentals of options calls and puts. 🎓✨

First, we examine calls, which allow you to profit from a stock's upward movement. By purchasing a call option, you gain the right to buy the underlying stock at a specified price (the strike price) within a set timeframe. We demonstrate how buying a call limits your maximum risk while potentially reaping substantial rewards. 💰📈

Next, we shift our focus to puts, which enable you to benefit from a stock's downward movement. Puts can be used to protect your existing stock position or speculate on a stock's decline. We explain how purchasing a put option caps your potential losses while providing downside protection. 📉⚖️

Throughout the episode, we emphasize the importance of understanding Delta, which measures the rate at which an option's price changes in relation to the stock's price. By comprehending Delta, you can gauge the potential profitability and risk of your options trades.

Please note that options trading involves complex strategies and risks. It's crucial to conduct thorough research, consult a financial professional, and practice sound risk management before engaging in options trading.

🔍 Topics covered in this episode:

Calls and puts on the Thinkorswim platform
Risk profiles and profit potential of calls and puts
Exploring Delta and its impact on options trading

Remember to subscribe to our channel for more valuable content on options trading and stay tuned for future episodes! Happy trading! 🚀💼

🔥 #Options101 #OptionsTrading #CallsAndPuts #StockMarket #Investing #Thinkorswim #TradingEducation #FinancialLiteracy

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📑 *ABOUT THE CHANNEL*
Hey, I’m Sasha, and I help people learn to trade options, create a consistent monthly income, and build your retirement account even if they have never traded before, are terrible at picking stocks, or have failed for many years! My goal is to help you learn and navigate the markets to profit consistently.

🛑 *DISCLAIMER*
All of the stocks mentioned in this video and any other videos we have are opinions and not investment, financial, or legal advice. These videos are for general education, information, and entertainment. Do your due diligence and consult with a registered financial advisor before taking any position since everyone has a different risk tolerance.