Options Trading Training
Options trading is an tool that investors use to make money in the stock market and to hedge their investments. Options trading can be considered a more advanced stock market trading strategy. One options contract equals 100 shares of stock and trades are made based on executing moves which are termed calls or puts. Purchasing a call gives an investor the right to buy 100 shares of stock while purchasing a put allows an investor to sell 100 shares of stock. Options trading can be desirable for individuals who wish to trade stocks but cannot afford to own them. Before getting into options trading, one should take self or instructor-led options training to understand this complex concept.
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TD Ameritrade
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Much like its motto of self-directed trading, TD Ameritrade offers self-directed options training. As part of TD Ameritrade, Think or Swim offers self-directed investors free online lessons about the basics of calls and puts. For example, you'll learn that selling a call obligates you to sell 100 shares of stock while selling a put obligates you to buy 100 shares of stock. Other online lessons include instruction on verticals, straddles and strangles, butterflies and wingspreads and ration and back spreads.
Options University
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Options University offers home study courses as well as online classes and live events in options trading. Concepts covered include basics of buying and selling options as well as premium obligations. For example, when you buy an option contract you pay a premium. With a buy or sell of an option contract, a premium is involved. Classes will help you understand the complexities of buying and selling as well as receiving and paying premiums and what you obligate yourself to when you enter into an options contract.
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CBOE
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The CBOE, or Chicago Board of Exchange, is the world's first options exchange. It is also the largest options exchange and creator of listed exchanges in the United States. The CBOE's hybrid trading system gives investors the ability to choose between electronic and open outcry trading. Its online options trading information and education section called the Options Institute has earned "Best of Web" honors. An online game called OptionQuest helps aspiring options traders master option concepts and strategies in a fun and entertaining manner. The CBOE also offers online courses and online seminars called webinars on options trading.
Options Industry Council
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The Options Industry Council offers online classes, webcasts and live seminars as well as audio and video podcasts to train investors in the art of options trading. Its virtual trading system allows investors to practice executing calls and puts before doing it live to gain confidence and understanding of how options trading works. The Options Trading Council has been educating people about options trading since 1992 and is sponsored by BATS Options, the Boston Options Exchange and the International Securities Exchange.
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