Introduction to Stock Options

Stock Option Basics - Becoming An Options Trader

Understanding Why Stock Options Are Important and Why You Are Using Them Is The First Step To Successful Stock Option Trading

Welcome to TheOptionClub.com Stock Option Tutorial.

If you have registered for our complimentary Introduction to Options course you will receive a continuing series of e-mails from us that introduce different concepts about stock options and demonstrate some of the ways they can be used responsibly to enhance your investing and trading experience.

The first place to start with your options education is to develop a clear understanding of why you want to learn about options and how you intend to use them.  Many people are drawn to options because of the leverage and corresponding profit potential they offer. Others are seeking to generate income. Some people want to protect their investment portfolios or enhance their returns. There are numerous option strategies and many ways they can be used.

If you make the effort to first clarify your goals, you will be able to to focus your efforts upon those strategies and techniques that are best suited to your needs.  For example, if you are looking to enhance the returns from an existing stock portfolio you might focus your efforts upon a covered call strategy.  You might consider other different options strategies if you were concerned about protecting your portfolio from a market downturn.

Before you begin trading options, you should read a document entitled Characteristics and Risks of Standardized Options, which contains basic information about options and examples of the risks involved.  This document is available as a free PDF download from the Options Clearing Corporation's website.

We will also refer you to other resources that we feel carry significant value, but caution you that not all material will be appropriate for your individual goals. By establishing an understanding of what you hope to achieve, you will be better able to make informed decisions about how best to proceed in furthering your options trading education. We are here to help you in that regard and you are encouraged to let us know how we might help.

As you learn more about stock options you will begin to see the truly amazing flexibility they bring to your investing and trading, as well as a tremendous ability the offer for adapting to changing market conditions.  You are not likely to "get rich quick" but with some discipline and determination there is no reason why you should not be able to achieve your financial goals.

Welcome to our community!

Christopher Smith
TheOptionClub, LLC

Stock Option Education Resources

TheOptionClub.com Trading Room Our subscription based educational service offers an advanced education in options trading, frequent live training sessions, and ongoing support. TheOptionClub.com Bookstore Great savings on investing and trading related books and DVD's.  If you need a suggestion as to which titles we recommend, please feel free to ask.

2 Responses to “Introduction to Stock Options”

  1. Toby says:

    Chris,
    RE: "If you have registered for our complimentary Introduction to Options course" - did I miss something? Is there a sign up page for this or is it your regular email list?
    Thanks for all the great info over the past year!
    Toby

  2. Hey Toby,

    This post is part of a site upgrade. For years we have had a couple pages where people could register for an e-mail based course that introduced stock options and their basic functioning. The course is intended to help people new to options so that they can engage in our community and have some understanding of the concepts being discussed.

    With the site upgrade I am replacing the old static HTML pages and once I track them all down and get them replaced, the plan is to update the actual content to include more video and perhaps some interactive content. It's a bit of a slow process as it's just me pounding away at it, but I'll get there.

    Once the new content is online, I'll be posting some rather obvious sign-up locations as well as sending out several e-mail based announcements that will allow folks to request the series.

    Chris