A Beginners Guide to Options Trading

Option trading

Options trading is becoming increasingly popular among investors. It’s no longer just the professional traders who are involved as more and more home traders and casual investors are taking advantage of the benefits of trading options. 

What Does Options Trading Involve?

Options trading involves buying and selling options contracts on public exchanges. It works like stock trading. Whereas stock traders make money by buying a stock and selling it at a higher price, options traders earn a profit by buying an option and selling it at a higher price. However, options trading is much more flexible compared to stock trading. Options contracts can be based on a wide range of underlying securities such as indices, stocks, foreign currencies, commodities, among other things, giving you far more opportunities for potential profits. 

Buying Options 

Buying an options contract is no different from buying a stock. You’re basically taking a long position on that option, believing that its value will increase. You can buy an options contract by simply choosing exactly what you want to buy and how many, and then submit your order to your broker. If your options increase in value, then you can either exercise your option or sell them. 

The good thing about options contracts is that you can buy them in situations when you expect the value of an underlying security to increase, and also in situations when you expect the value of the underlying security to decrease. If you expect the value of an underlying security to go up, then you would buy call options, which allows you to buy the underlying asset at a fixed price. If you expect the value to go down, then you would buy put options, which allows you to sell the underlying asset at a fixed price.

Selling and Writing Options

You can sell options contracts either by placing a sell to close order or by placing a sell to open order (writing options). You would usually use the sell to close order if the value of your options has increased and you want to take your profits at that point, or if the value of your options has decreased and you want to exit your position before you incur any other losses. You would usually place a sell to open order if you think the value of relevant underlying security wouldn’t change in such a way that the holder would be able to exercise his or her option to earn a profit. 

Options Spreads

The ability to create options spreads is what really makes trading options an interesting way to invest. While you can make money trading through buying an option and selling it if you earn a profit, it’s the spreads that provide you much more opportunities to make serious money. An option spread is created when you simultaneously buy and sell options of the same class on the same underlying security but with different expiration dates or strike prices. 

If you want to trade options, you will have to work with a brokerage firm that supports options. Keep in mind, however, that each platform is unique and has its own benefits and drawbacks. Thus, it’s best to clearly define what you want in an options account and platform before you get started.

Truebill Review- Stop Subscription Services form Emptying your Wallet

truebill

Truebill is a San Francisco based fintech firm that allows a user to find, track and manage their subscription services and recurring bills. It was founded in the year 2016 by Idris Mokhtarzada and Yahya Mokhtarzada. Plus, it has also received a total funding amount of 6.9 million. The motto of this firm is to save money and time for its users and contribute to their financial health.

Features of Truebill App

1. Helps you manage your subscriptions

It is very common for people to provide their credit card information to subscription-based services. Particularly, in the trial period. But as the trial ends, these companies charge you a few dollars each month. Sometimes you might forget about them. Especially, if you have a busy schedule and don’t have the time to read each line on the credit card statement. Truebill streamlines all the services you have subscribed to and notifies your every month before the billing date.

2. Lower your monthly expenses

Have you ever tried negotiating with your cable TV services or cell phone company? If you have, you must know how difficult it to, first, get a hold of the right people and then convince them to give you a discount. Truebil negotiates with cable services, cell phone companies, and other such companies to get you the best price in the town. 

3. Visual representation of your expenses

I have tried those cheap money management apps you find on the Google Play Store. None of them are foolproof. No app has ever delivered what it promised to. Truebill’s dashboard is quite simple and straightforward. First, you have a bar chart showing your monthly expenses of the current and last five months’ expenses. And them two columns showing your spendings and earnings of selected months.

What I like about Truebill App

I am pleased with the way Truebill gathers all the information without me having to enter anything manually(like, I don’t have to make an entry every time I spend). All I have to do is install the app on my phone and enter the credit card details. The app does everything else on its own.

What I don’t like about Truebill App

Truebill only displays the billing information of the previous months. It won’t tell you the amount you have to pay for using a particular service(like cable TV) this month. This is one downside of the Truebill app. However, I have faced this issue only with the billing information section.

My recommendation

I recommend Trubill app to anyone tired of using the cheap money management apps which ask you to manually insert your expenses. This app does a great job without you having to make any effort.

Pricing

The basic version of this app is completely free. However, they have several in-app purchases ranging from $2 to $35 per month.