Learning About Options Trading Strategy

Learning about options trading involves becoming familiar with various strategies and moves.

When learning about options trading, there is a whole new language you will have to become familiar with. Once you know the basics, you can begin learning how to use different types of trades and employ strategy in your investments. In the article “Difference Between Short Selling And Put Options” from The Bull Premium, you can learn about two of the most popular bearish moves in option trading.

In short selling, you will be selling a security that has been borrowed. If the stock declines, you can buy it back at the lower price and make a profit. When you buy a put option, you are purchasing the right to sell a stock at a predetermined strike price before an expiration date.

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