1. Introduction - Day Traders
  2. Introduction - Day Trading and Options
  3. Types of Options
  4. Near Month In-The-Money Options and The Protective Put
  5. Stock Options and Weekly Options
  6. Mini Options
  7. Index Options and Mini Index Options
  8. Binary Options
  9. Options on Futures
  10. ES Weekly Options and E-Mini Options
  11. ETF Options and IRA Options
  12. Conclusion

There are two main classes of options

  • Put options allow investors to sell a stock at a certain price
  • Call options allow investors to buy a stock for a certain price

The Underlying Asset

Traditionally, the majority of options have been based upon shares in publicly listed companies. However, options based on other underlying investments are becoming increasingly common. These include options based on stock indexes, exchange traded funds (ETFs), REITs (real estate investment trusts), foreign currencies, and commodities like agricultural or industrial products. 

Details

When dealing with stock options contracts, it is important to note that they are based on 100 shares of the underlying stock. An exception would be when there are adjustments for stock splits or mergers. It is also important to remember that buying stock options is completely different from buying stock. American options can be exercised anytime between the date of purchase and the expiration date. European options may only be redeemed at the expiration date. Most exchange-traded stock options are American.

Types of Options

  1. Near month in-the-money options
  2. The Protective Put
  3. Stock Options
  4. Weekly Options
  5. Mini-Options
  6. Index options
  7. Mini Index Options
  8. Binary Options
  9. Options on Futures
  10. ES Weekly Options
  11. E-Mini Options
  12. ETF Options
  13. IRA Accounts

Now let us examine some of the types of options that are available to the day trader.


Near Month In-The-Money Options and The Protective Put
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