Most option traders (including myself) only trade the contracts themselves, without owning the underlying security. It's been a very profitable strategy for myself while limiting risk (much less risk to purchase a put option than shorting a stock).
Why don't you trade some options on a fake virtual stock account and find out. Also, look into buying and selling, calls and puts. You can buy a call or put and you can sell a call or put. Selling a call or put is also called writing an option. In regards to the price movement, look into the Greeks and how the influence the price. Vega is suppose to be one of the most important. Go to investopedia.com and read up on it. My fingers are way to sweaty to type all this out on my phone.
If a person has no knowldge and skills about Forex then it will be very difficult to trade in Forex. But if you use the right software you can make very good profit. The best software is called "autobinary signal". If you aren't a big expert this software is the only way to earn good money in Forex.
I Agree with Joe. Try using free stock market virtual trading like http://www.boilerroomtrader.com to learn the stock investing.
I'm earning good money with this binary option signal sofrware ( http://forexsignal.kyma.info ) What I'm going to show you now might irritate old-fashioned traders who can't accept that a piece of software can outperform what they have learned through many years of trial and error
Okay so I get what calls and puts are. I get how buying a call gives you the right, but not the obligation to buy the underlying stock at the specified strike price. I know that buying a put means you are bearish on the security and it means you have the right to sell the stock at a specific price, right?
But what I don't understand is that, when people trade options, are they buying and selling contracts? I know some people that buy calls and then they make like 200% day trading them. I don't get how this is possible, when the underlying does not move that much. Is it because of the increased delta, which makes it more similar to an actual stock the closer the delta gets to one?
Basically what I am asking is, to profit from day trading options, do you for example, buy a contract of AAPL at a strike price of 95 (for example), and then just immediately buy the shares at 95 and sell them at the market price for a gain? (the market price of AAPL is currently 102.50 I believe). Or do you just buy the contract for the 95 strike price and only pay ONLY the options premium, and then sell that contract immediately in the open market, without ever exercising the option to buying any legate shares at 95? So are the people that are making like 200% etc (I know someone who made that off of TWTR calls), are they just profiting off of the delta?
I have looked a lot of stuff up, but nothing answers my question.
