With the recent market turmoil, investors have been left scrambling for a low-risk, high-return investment vehicle. Many have felt hopeless watching their investment accounts tumble as blue-chip stocks have taken a beating from the current economic uncertainties in a post-COVID world. So what’s an investor to do?
Now is an excellent time for options. Options trading is a low to high-risk strategy of minimal investment that can be scaled and leveraged to your desired risk tolerance. The best part is that there are often high rewards! With new and exciting investment opportunities being added to the market each day (I’m looking at you, Atlis Motor Vehicles), the availability of new stocks to buy options on is nearly endless!
So how does one buy options? It’s simple! First, download a reputable stock trading app such as Robinhood, connect your banking information, transfer money, read the rules, and buy away! It’s simple to select between calls or puts. If you suspect that the market will go down, you will buy puts. If the market is going to go up, buy calls! It is that simple. Most investors buy options expiring within the next 30 days for the best value, but this is personal preference and can be tailored to your risk tolerance!
If you’re still unsure how to buy options, take some time to read up on online forums where other traders will speak about their experiences and offer helpful advice on starting your journey towards financial independence.
A personal favorite of mine happens to be a diamond in the rough of the financial trading community. If you’re looking for a group of investors, traders and academics, look no further than https://discord.gg/outofoptions. I’ve personally never seen more good and accurate callouts since I’ve begun trading. What’s unique about this group is that they do not monetize their community – no t-shirts, no programs, no paid channels – it’s all in the spirit of helping your fellow trader.
Disclaimer: The Simple Herald is not a registered investment, legal or tax advisor, or broker/ dealer. All investment/financial opinions expressed by The Simple Herald are from the personal research and experience of the writer of this article and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, unintended errors and misprints may occur occasionally.