Most people may know about stock market investing and how it is possible to make money buying shares of stock in a company.

However, very few people know about stock options trading strategies and how they work.

Investing in the stock market is fairly simple.

You basically buy shares of stock of a particular company at the market price and wait for the stock price to move.

If the company does well, the price of the stock goes up and you the investor will make a profit.

If the company does badly, the price of the stock goes down and you the investor will LOSE money.

Options trading strategies basically take stock trading to another level.

When trading options online, you can set up single options trades that will allow you to make a profit whether the stock price goes up, stays flat, or even if it goes down.

Trading with stock options gives you the kind of reduced risk that would not be possible if you were strictly investing in the stock market.

With a stock purchase you can only make money if the stock has a significant move in one direction, and you have very little room for mistakes.

This means that if you bought a stock today, even if the stock has an increase in price, unless the stock moves up a lot, commissions and fees will quickly gobble up all your profits.

By contrast, with MOST options trading strategies you want the stock price to be flat so that you can execute the same trading strategies over and over again.

You Can Trade Options Like You Trade Stocks

If you are already familiar with trading in the stock market, the learning curve for successfully trading options will be easy.

Just as you buy and sell stocks online through a broker, you can trade options via an online options broker.

There are a few differences between options and stocks but the two big differences are that ALL options expire at some point, and with options trading YOU get to determine what price you want to buy and sell a stock.

For example, even if a stock is trading at $60, an options trading strategy will allow you to purchase the stock at $20.

There is also a big difference between options buyers and options sellers. Different trading rules apply.

How Options Trading Works For Buyers

Stock options give the BUYER of the option the right but not the obligation to BUY or SELL a stock at a certain predetermined (strike) price up until the option expires.

In more simple terms if you were to buy a stock option, you would have the OPTION to buy or sell a stock at a price that you choose. It would be your choice.

How Options Trading Works For Sellers

The opposite applies to stock option sellers. For option sellers they have the obligation to receive or release the stock at the strike price (more on this later) that they selected when they sold the option.

In other words if you sold an option you will HAVE to buy or sell the stock to the investor that bought it from you. You do not have a choice.

This is actually not a bad thing depending on how you implement your options trading strategies.

Many Types of Options Trading Strategies

There are many different types of options trading strategies available to you.

There are basic strategies for beginners such as covered calls, and there are advanced strategies such as collars and strangles.

I will be covering a lot of these different strategies on my website.

Trading Call Options VS Trading Put Options

There are two types of options available for you to trade.

A call option gives the buyer the right to buy a stock at a certain price up until the option expires.

A put options give the buyer the right to sell a stock at a certain price up until the option expires.

All options trading strategies will involve puts or calls and in some cases a combination of both.

Many Ways To Trade Options Strategies Online

As there are many types of options trading strategies, there are also many ways to trade options. What I mean by this is that the stock market is not the only market that allows you to trade options.

I know the ins and outs of trading options in the stock market pretty well. However, I will be getting involved with other areas and publishing my findings to you.

So in a way, we will both be learning together. I plan to cover things like Futures options trading, binary trading, currency trading and possibly (this is a big maybe) how options work in real estate.

Keep checking back as I am sure you will find more than enough information to allow you be successful with options trading.

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