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Getting Your Feet Wet

Option trading is more complicated than trading stock. And for a first-timer, it can be a little intimidating. That’s why many investors decide to begin trading options by buying short-term calls...

Writing Covered Calls

Writing a covered call means you’re selling someone else the right to purchase a stock that you already own, at a specific price, within a specified time frame...

Buying LEAPS Calls as aStock Substitute

We’ve already warned you against starting off by purchasing out-of-the-money, short-term calls. Here’s a method of using calls that might work for the beginning option trader: buying long-term calls, or “LEAPS”...

Selling Cash-Secured Puts on Stock You Want to Buy

What if you could buy stocks lower than the current market price? And what if you could make money when you’re wrong about the direction of the market?

Five Mistakes to Avoid When Trading Options

We’re all creatures of habit — but some habits are worth breaking. Option traders of every level tend to make the same mistakes over and over again...