Options University Blog

Options utilize the volatility of the market to make a superior fortune via options trading easily. Most times, the big profit is make when the value falls by buying a "put option" and buying a "call option" when the value is rising.

Do you see the power of leveraging in options trading?
You can leverage your money by trading in options with limited amount of capital.

There are 2 basic things you can do in options trading:-
1) They give you the right to buy options
2) They give you the right to sell options at a future time and at a future price.

There is no obligation to buy or sell until the expiration date of the option. It will be worthless after expiration date. Thus, you must trade it.

You can sell the option for a profit if you are buyer. And you also can cancel your option if you are writer.

However, the obligation can be canceled if you have written a "put" by buying it back. And you can buy it back and cancel your obligation to sell stock too if you have write a "call" on that option.

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