Options are a new and exciting way to engage with the market. They provide different benefits from more standard investments, like stocks, bonds, or ETFs.
We covered how options are essentially contracts that allow traders to buy or sell stock at a predetermined price. They offer leverage, meaning that you can use a (relatively) small amount of money for a (relatively) larger return. They can offer higher reward, but that’s paired with higher risk.
We’ve also explored the different types of options available on eToro Options, such as:
- Calls
- Puts
- Call spreads
- Put spreads
You also learned the various measurements that go into the price fluctuations of an option (the Greeks.) These include:
- Delta
- Gamma
- Theta
- Vega
Building a diversified portfolio with options can help you tackle market swings in a new way. As you continue on in your options investing journey, remember to stay informed, do your research, and evaluate your strategy regularly.
With the knowledge you have gained in this beginner’s course, you’re well on your way to achieving your financial goals and building a successful investment portfolio.
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments.
This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.