Have you ever heard about options trading? It’s a strategy that has the potential to boost your returns, generate income, or even hedge your existing portfolio. But let’s be honest, all that talk of strike prices, expiry dates, and Greek letters can be confusing at first.
The good news is you don’t need to take a finance degree to get started. Even basic options strategies can enhance your returns. For example:
Buy a call option if you believe a stock price will increase (bullish).Buy a put option if you believe a stock price will decrease (bearish).Sell a covered call to generate income from your existing stock holdings.
If you’re willing to invest some time in learning, options trading can be a powerful tool to complement your existing investment strategies and improve your risk-reward profile.
Finding the Right Platform for Option Trading
In the past, I used platforms designed for professionals such as TD Ameritrade, which could be overwhelming for beginners. Since they were taken over by Charles Schwab, I started to explore option trading with m one of my favourite platform designed to help regular folks like you and me, whether you’re a complete beginner or have dabbled in options before.
I am surprised to see that moomoo makes it so easy to use, even in a mobile app.
Learning Options on the Go
While this article won’t delve into the specifics of options trading (there are plenty of resources online!), moomoo offers a ton of educational resources specifically designed for beginners. Bite-sized articles, video tutorials, and in-depth strategy guides are all easily accessible within the app under “Discovery -> Learn -> Options.”
These bite-sized courses are easy to understand and don’t require a huge time commitment. There’s even an “Option Master Exam” to test your knowledge after learning.
Checking Options Data Made Simple
If you’ve ever looked at an options