{"id":14193,"date":"2022-11-23T23:09:10","date_gmt":"2022-11-23T23:09:10","guid":{"rendered":"https:\/\/tradeui.com\/?p=13585"},"modified":"2022-11-23T23:09:10","modified_gmt":"2022-11-23T23:09:10","slug":"what-is-option-trading","status":"publish","type":"post","link":"https:\/\/tradeui.com\/new\/blog\/what-is-option-trading","title":{"rendered":"What is Option Trading?"},"content":{"rendered":"

Are you looking for a new form of investing that can 10x your portfolio in a matter of weeks?<\/strong><\/p>\n

Well, you need to look elsewhere, because option trading isn\u2019t like what you see on Wallstreet bets.\u00a0 Sure, you can \u201cBeat the Market\u201d but, without understanding the basics of option trading, you will set yourself up for failure.\u00a0 The bright side to this gloomy opener is that by reading this article, we can show you how to better understand the world of options and become a better trader that can beat the street.<\/p>\n

So, what e<\/strong>xactly is option trading?<\/strong><\/p>\n

\"\"Option trading is the trading of contracts that give you the right to buy or sell 100 shares of the contracts underlying representation.\u00a0 So, say there is an Apple options contract that represents a price of $150.00 selling for $4.20, this means that buy paying $4.20 per share, you can own the right to purchase 100 shares of Apple at $150 per share.<\/p>\n

Are you asking, \u201cHow does this make any sense?\u201d Well, we will show you.\u00a0 Imagine you want to ability to control 100 shares of TSLA listed at $200.00 per share, but you don\u2019t have the $20,000+ to purchase those shares.\u00a0 However, you notice that you can purchase option contracts that represent 100 shares of TSLA stock at $2.00 per share. So, for $200.00, you control the value for 100 shares of TSLA.\u00a0 If it moves up $10.00 in value, you know own the right to purchase 100 shares of TSLA at $20,000 vs the value of $21,000 it would be at after the $10 dollar move.\u00a0 That equals out to a $800.00 profit from a $200.00.\u00a0 In other words, you 4x your initial investment.\u00a0 If you were to just buy the stock out right, you\u2019d only make a $1000.00 return on a $20,000 investment (5%.)<\/p>\n

\"\"<\/p>\n

Is it too good to be true?<\/strong><\/p>\n

Well, yes and no.\u00a0 Option trading is a very powerful tactic that utilizes leverage.\u00a0 If you are correct on the trade, you will set yourself up for trades that 2,3,4\u202610x your profits.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 However, leverage works both ways.\u00a0 If you are wrong on a trade, you will set yourself up for tremendously losses.<\/p>\n

How do I find the right trade?<\/strong><\/p>\n

Getting the right information at the right time is key to finding the right option plays.\u00a0 Understanding option flow, technical\/fundamental analysis, dissecting earnings reports, and tracking insider buying are the keys to finding winning option trades.\u00a0 TradeUi in a website that has all these tools in one handy location.\u00a0 Track stock news, earning dates, when insiders are buying\/selling, and stay on top of option flow that shows when millions of dollars\u2019 worth of option contracts are being purchased!\u00a0 They also have a YouTube channel full of tutorials on how to use the site and give yourself a trading edge.\u00a0 If you are ready to take the next step, check out their 2-week trail and see TradeUI is the missing key to your trading kingdom.<\/p>\n

\"TradeUI

TradeUI Company Logo<\/p><\/div>\n

https:\/\/tradeui.com\/?wpam_id=23<\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Link to TradeUi<\/p>\n

https:\/\/www.youtube.com\/channel\/UCdY8OXotdst0wkjPuc4NPQg<\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Link to YouTube Tutorials<\/p>\n","protected":false},"excerpt":{"rendered":"

Are you looking for a new form of investing that can 10x your portfolio in a matter of weeks? Well, you need […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","footnotes":""},"categories":[4532,4590,4551,4552,4553,4604,4605,4632],"tags":[4554,4555,4564,4571,4640,4577,4635,4578,4588,4636,4606,4558,4559,4637,4611,4612,4613,4581,4617,4561,4562,4641,4642,4574,4608,4643,4644],"class_list":["post-14193","post","type-post","status-publish","format-standard","hentry","category-blog","category-courses","category-finance","category-option-flow","category-trading-options","category-trading-steps","category-trading-strategies","category-tutorials","tag-analysis","tag-big-money","tag-day-trader","tag-day-trading","tag-investing","tag-market","tag-market-sectors","tag-money","tag-option-flow","tag-option-flow-market-sector","tag-option-strategies","tag-option-sweeps","tag-options","tag-options-flow","tag-options-trading-concepts","tag-options-trading-explained","tag-options-trading-leverage","tag-stock-market","tag-stock-trading","tag-stockmarket","tag-stocks","tag-stonks","tag-swing-trading","tag-trading","tag-trading-strategies","tag-wallstreet","tag-wallstreetbets","pmpro-has-access"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/posts\/14193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/comments?post=14193"}],"version-history":[{"count":0,"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/posts\/14193\/revisions"}],"wp:attachment":[{"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/media?parent=14193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/categories?post=14193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradeui.com\/new\/wp-json\/wp\/v2\/tags?post=14193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}