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Cash-Secured Puts: The Smart Way to Buy Stocks at a Discount Members Public

The cash-secured put strategy is a powerful technique that allows investors to potentially purchase stocks at below-market prices while generating income in the process. It involves selling put options on stocks you'd like to own, while setting aside enough cash to purchase the shares if needed. When you

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Rookie Education

The Covered Call Secret: Earn Money While You Sleep Members Public

The covered call strategy is one of the most popular and beginner-friendly options techniques that allows investors to generate additional income from stocks they already own. It involves selling (or "writing") call options against shares you hold, collecting premium payments in exchange for agreeing to potentially sell your

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How to Get Paid for Saying 'Maybe': Selling Options Explained Members Public

Selling options is a powerful strategy that allows traders to generate income by collecting premiums from other market participants. Unlike buying options, where you pay a premium and hope for a big move, selling options puts you in the position of the "house" – you collect premiums upfront and

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Rookie Education

How to Win Big by Simply Buying Calls and Puts Members Public

Buying calls and puts is the simplest way to start trading options. A call option gives you the right to buy a stock at a specific price, making money when the stock rises. A put option gives you the right to sell a stock at a specific price, making money

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Rookie Education

The 5-Minute Guide to How Option Prices Move (Delta & Gamma Made Easy! Members Public

When trading options, understanding how option prices respond to changes in the underlying stock is essential for success. Two key concepts that explain this relationship are Delta and Gamma. Delta measures how much an option's price will change when the underlying stock price changes by $1. Gamma measures

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Rookie Education

ITM, ATM, OTM: How to Pick the Right Option Every Time Members Public

When trading options, one of the most fundamental decisions is selecting the right strike price in relation to the current stock price. Options are categorized into three main groups: In-The-Money (ITM), At-The-Money (ATM), and Out-of-The-Money (OTM). Each category has distinct characteristics, risk-reward profiles, and appropriate uses in different market scenarios.

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Rookie Education

Strike Price, Expiry Date, and Premium: Your Profit Recipe Members Public

Every options contract has three essential components that determine its value and behavior: the strike price (the price at which you can buy or sell the underlying stock), the expiration date (when the contract ends), and the premium (what you pay or receive for the contract). Understanding how these three

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Rookie Education

Calls and Puts Explained: Your Fast Pass to Trading Power Members Public

Calls and puts are the two fundamental types of options contracts that form the building blocks of all options trading strategies. A call option gives you the right (but not the obligation) to buy a stock at a specific price within a certain time period. A put option gives you

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Rookie Education