Frequently Asked Questions
Frequently asked questions.
Price will always lead any other indicator out there in technical analysis field. However, it is important to look for aggressive buying and selling, which will confirm a trend or even a trend change.
Options are one of the easiest ways to grow a small account. They are very high risk however we take that learning curve and shorten it by teaching options to beginners or even intermediate trades.
Ex. Long call
Tesla shares 687.00 USD * 100 = $68,700.00
Risk is $68 700 USD, as that is how much money that is being used in this trade
1 call options represent 100 shares:
800 call Options Expiring September 17, 2021, is worth $12.30 *100 = $1230.00
My risk for this trade is $1230.00, if by Sep 17, 2021, tesla does NOT increase in value that is the maximum I will lose. Less risk.
Options can also allow you to own shares at a discount. One can do this by writing a put.
If you own shares, you can use strategies such as covered call, married put & collard strategy to protect your profits.