Options are a new and exciting way to engage with the market. They provide different benefits from more standard investments, such as stocks, bonds, or ETFs.
We have covered how options are contracts that allow traders to buy or sell stocks 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, including:
- Calls
- Puts
- Call spreads
- Put spreads
We’ve 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 to tackle market swings in a new way. As you continue on your options investment 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.
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This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past 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 guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.