📊Stocks

Getting Started with Stock Options.

What are Options?

Technically, Options are financial instruments that are derivatives based on the value of underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying asset.

What are Calls?

Calls are a type of options contract you purchase when you believe the stock is going to go UP.

Ex. If you have an Apple call and the stock goes up, you profit.

What are Puts?

Puts are a type of options contract you purchase when you believe the stock is going to DOWN. If the stock price drops, you profit.

Basic Terminology

BTO = Buy to Open (aka Start a position)

STC = Sell to Close (aka Close a position)

Lotto = Gamble/Risky/Lottery

Trim = Sell a percentage of your position

Cut = Sell for a loss

TP = Take Profit

SL = Stop loss, a place where your order will sell/close.