Today's volatile and uncertain market conditions have helped demonstrate the importance of options trading in the marketplace and its ability to produce profits in any type of market.
Before trading options, an investor needs to understand how options help with respect to their portfolio. A particular strategy is only successful if it meets an investor's goals. As discussed, one of the benefits of options is the flexibility they offer; they can complement portfolios in many different ways. So it's worth taking the time to identify a goal that suits the investor and their financial plan. The first step is to decide whether markets will be going higher, lower or remain bounded; this will help narrow the range of strategies to use. As with any type of investment, only some of the strategies will be appropriate.
In other words, whether you're bullish, bearish or neutral, there is money to be made.
To help you along the path towards understanding the complex world of options trading, we offer comprehensive educational resources that include tutorials, strategies, Payoff Diagrams.
Individuals with all levels of past trading experience and financial resources are welcome, and can benefit from our educational site.
The Option Strategies section provides tutorial and different strategies when using options. The Payoff Diagram section will generate payout charts, with user defined trading parameters. This site also provides new investors with resources and links to online brokers.