Option Trading

Option trading is when you buy or sell an underlying asset at a pre-negotiated price by a certain future date. Trading stock options can be complex — even more so than stock trading. However, options trading does provide great active and passive income when done correctly.

People do option trading on top of their stock purchasing. That’s because buying options are relatively cheaper. An option consisting of 100 shares with a premium as compared to outright owning 100 shares.

Not only that, purchasing an option can act as insurance in a case where the stocks drop to the allocated strike price.

If options trading is what you wish to learn and are interested in learning how to earn additional sources of income apart from just owning stock. Read on to learn more about options trading.