When starting out in options trading, it can be tempting to use similar strategies from stock trading. However, this could potentially lead to significant losses.
In this article, we'll explore why options trading requires a different approach and discuss techniques that may be more appropriate to this style of trading.
Options are not stocks
The first and most important thing to understand about options is that they are not stocks....

The reason for the weekly gains is combination of optimism for an economy that has shown immense resiliency and corporate earnings which have come far better than expected. On the other hand, there’s the overhang of the Fed which paused its rate hike at its last meeting. It is highly anticipated that the Fed will increase rates again at next week’s meeting. The question is, will they then pivot to a more dovish approach? If the Fed disappoints, can big ...

Market summary July 25th
Market indices were in a holding pattern today, on the eve of the forthcoming FOMC meeting. While the QQQ recorded a robust gain of 0.68%, other broader indices like the Russell 2000 and NYSE composite remained largely unchanged during the session. Both exchanges continued to display net highs, consistent with the ongoing uptrend.
Unless there are unforeseen revelations during tomorrow's FED press conference, it's likely to be a relatively quiet ...

Options trading offers the potential for lucrative gains in the markets, yet it's vital to recognize their high-risk nature and to proceed with caution. Mitigating risk in options trading involves employing key strategies that are crucial for success. Here are some suggestions to consider:
Don't be greedy:
One of the most common mistakes made by new options traders is being too greedy. They may hold onto positions for too long or try to ...