The Basics

Fundamentally, Options trading uses Puts and Calls to create strategies that can be long or short, defined or undefined, naked or spread.

In essence, all options strategies are made with various combinations of Puts and Calls.

For new traders this may come as a surprise. And a welcome one, I hope. But that’s it in a nutshell.

And when you understand the nature of these two building blocks and how they go together, you’ll be well on your way to becoming a successful trader. No magic tricks. No mystery. No “special” knowledge. You can learn this. It’s much easier than you think.

Granted there are other factors that come into play when putting on a trade. But learn about Puts and Calls first and you’ll know more than 90% of your investing peers, and very likely, your personal financial advisor, too