FAQ ABOUT Options Trading


Similar to stock trading, options trading involves buying and selling options contracts on public exchanges. Options contracts give you the choice, but not the obligation, to buy or sell an underlying asset, such as stocks or bonds, at a specified price by a specified date.

In simpler words, options trading is the process of buying and selling put and call options. Call options are contracts that give the investor the right to buy a stock at a set price for a certain period of time. Put options represent the right to sell an asset at a pre-determined price (the strike price) for a specified period of time.

Importance of learning options trading

Beginner investors often stay away from options trading as it seems too complex and risky at first. However, once you know a few key points, you can make significant profits without necessarily having to have large sums of money. Unless you do not mind losing money, it is important to learn options trading.

Here are some reasons why you should trade options:

  • Big profits from small investments.
  • Easier risk limit.
  • Flexibility.

Options trading gives you the knowledge and experience to work as:

  • Retail Investor
  • Institutional Trader
  • Broker-Dealer
  • Market Maker

Options trading is ideal for those who are looking to make tactical trades to generate additional income. Many choose options trading to diversify their portfolio.

Options trading is not suitable for buy-and-hold investors and inexperienced traders.

In order to become a profitable options trader, you will need:

  • The knowledge that can be gained in college or through courses that teach finance and accounting.
  • An account on an options trading system.
  • Tools and strategies to select options and predict their strike price.
  • Experience.
  • Patience, discipline, and flexibility.

To master trading options, you should learn these four trading strategies:

  • Gamma scalping
  • Day trading
  • Swing trading
  • Position trading or investing.

As the amount of knowledge needed to trade options is quite massive, you will need at least a few months to study and experiment with each options strategy on a virtual trading platform before it can be confidently and profitably applied.

No matter how long you have been into options trading, if you think there is room to improve your trading skills, online courses can come in handy. These courses can help you:

  • Gain the needed knowledge to start trading options right.
  • Learn to use tools and strategies for better investment decisions.
  • Diversify your investing skills and increase your earning potential.
  • Master different types of trading options.

Most of our courses do not require specific skills or experience. Once specific requirements are needed, we state them clearly in the course’s description.

A quick search on Google can lead you to dozens of free courses for options trading. However, their quality can be questionable. Professional traders do not share their knowledge and secrets for free, unfortunately. But don’t sweat it, you can save your initial investment with Library of Trader with our membership that provides up to 150 free courses to download each month.

Depending on your level of expertise in trading options, we have a wide range of online courses to meet your demand. Here are our top recommended courses to help you become steadily profitable as an options trader

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