When thinking about investing in the stock market, the natural inclination is to simply buy stock and hope for the best. There is another option available, however, than many first time investors don’t even consider, and it’s literally that: a stock option. It can sometimes be a safer way to invest, and sometimes a riskier but more rewarding one. Buying stock options is, however, a bit more complex than just buying stocks, so it’s vital to understand what it is you’re getting into.
Understanding Stock Options
A stock option is an option to buy a stock, as the name would imply. Specifically, it’s an option to buy a stock at a future point in time at a previously established price, regardless of how that stock has performed in the meantime. Purchasing a stock option is essentially a bet that a company will perform a certain way. If the company doesn’t then the investor will lose money.
Calls and Puts
There are two different basic types of stock options: calls and puts. A call is when an investor buys the option to buy a stock at a future point in time at that fixed price. Conversely, a put is when the investor buys the opposite, the option to sell a stock at that fixed price at a predetermined date. There are numerous different types of both calls and puts, some focused on long term gain, others on short term turnover. Choosing the right type of investment to make can be difficult, and it’s often wise to rely upon an options trading advisory service.
Options Trading Advisory Service
An options trading advisory service is exactly what it sounds like. They will give you advice not only on which stocks that you should purchase, but also specifically which types of investments should be made with which stock options. Because options trading is so complex, trying to trade without the help of an advisory service or a lot of prior experience of your own can be a disastrous decision. With the help of a competent and trustworthy options trading advisory service, like Trade Genie, you stand a much better chance of growing your personal wealth.
Always keep an eye out for scams. Some services are comprised of dedicated professionals, but others are just amateurs looking to deceive and make a quick buck. Be a discerning investor, and only go with services that you feel like you can trust.
