Part1 Ride The Big Moves

Types of Option Traders
1. Speculators
They aim to profit from market direction using options. Their goal is capital gain.

2. Hedgers
They use options to protect investments from unfavorable price movements.

3. Income Traders
They sell options to earn premium income.

Option Trading Strategies
1. Basic Strategies
A. Buying Calls (Bullish)
Used when you expect the stock to rise.

B. Buying Puts (Bearish)
Used when expecting a stock to fall.

C. Covered Call (Neutral to Bullish)
Own the stock and sell a call option. Earn premium while holding the stock.

D. Protective Put (Insurance)
Own the stock and buy a put option to limit losses.