It Also Covers How To Trade "Stock Options":
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It provides a quick and simple guide. Many times people buy a separate book on learning options, but this is unlike any other guides.
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The purpose to learning stock options is - when you trade options, the stock only has to go up about two and a half percent, for the option to go up 100%. It's entirely possible to make 10x profit - Which Equals - You don't need a lot of money to trade stocks you only need $200!!!
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To explain why an option can go up Sooo much, is you would by an O.T.M. option (Out of The Money) which is basically worthless - say the stock you're looking at is currently trading at $9. You would buy the $10 option - gambling it would go I.T.M. (Into The Money). If it does the option would go up dramatically, once it hits $10, and will keep exploding IF the stock price keeps going up.
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Conversely if it doesn't hit, it'll expire worthless - so obviously you would learn what you're doing first, and only buy options on the stocks that you're pretty sure of. - Having said that, you can lose all your money on one option, and come out ahead (sometimes far) IF the other one you chose is a winner.
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With stock options you can also very easily play a "Down Market" - that is IF you think the stock's going to go down, you can buy what's called a "Put". It works the same way as a "Call", only in reverse - See ROKU Trade
When you trade options, the stock only has to go up about two and a half percent, for the option to go up 100%
BA - Symbol for Boeing
Boeing Calls - Made 850%
With stock options you can also very easily play a "Down Market" - that is IF you think the stock's going to go down, you can buy what's called a "Put". It works the same way as a "Call", only in reverse
WATT Calls Trade - Explained a little further on page 1