Option Trading -

Options trading involves buying or selling contracts that give you the right—but not the obligation—to buy or sell an asset (like a stock or ETF) at a set price within a specific timeframe.

: One contract typically controls 100 shares, allowing for significant market exposure with less upfront capital than buying shares outright. Basic Strategies OPTION TRADING

: The cost you pay (as a buyer) or receive (as a seller) for the contract. Options trading involves buying or selling contracts that

: You own the stock and sell a call against it. This generates immediate income (the premium) but caps your potential profit if the stock price soars. : You own the stock and sell a call against it

: Risk is strictly limited to the premium paid. However, options are time-sensitive; if the stock doesn't move as expected before expiration, the entire investment can be lost.

: You buy a call if you expect the stock price to rise. Your risk is limited to the premium paid, but potential profit is theoretically unlimited.