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The Fundamentals of Trading: Option Myths and Facts

Breaking down the pros, cons, myths and facts of options trading

by Andrea Kramer (akramer @sir-inc.com) 1/22/2008 10:59 AM

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Before I came to Schaeffer's Investment Research, I had no background in options trading. I was familiar with general market terms, but, like most people, I didn't know the first thing about options themselves.

The first task my boss gave me to educate myself on the ins and outs of options was to read the Schaeffer's 10 Days to Successful Options Trading ^� book. After reading the training manual, I had a new understanding of the world of options. I'm still learning, of course, but I accomplished a sense of what options were and how they were used as a trading strategy.

I am confident that if I, a virtual options novice, can tackle the crevices of options, anyone can. In this new video series, I'll break down the fundamentals of options into the most simple terms. In the series debut I explained what an option is, broke down the two kinds of options, and delved into the 3 critical components of an options contract. In the second part of the series, we went over determining if an option contract is in the money, at the money, or out of the money.

Click here to watch part one of two, and click here to watch last week's installment.

In this week's video, I'll break down the pros and cons of options trading, as well as several myths and facts circulating the options world. Click below to watch.

For additional timely commentary on today's market-moving news from me and my colleagues Beth, Elizabeth, Jocelynn, Joseph, and Mark, please visit our Schaeffer's Daily Market Blog section throughout the trading day.

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The Fundamentals of Trading: Option Myths and Facts

Breaking down the pros, cons, myths and facts of options trading

by Andrea Kramer (akramer @sir-inc.com) 1/22/2008 10:59 AM

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