So you understand stocks as long-term investments that can be bullish and bearish. But, we’re here to learn about options.
Why do we trade options? There are a lot of reasons and Rachel tries to pack them all into a 4 minute summary. We use options because they aren’t just directional like stocks. They’re more flexible and allow more advanced strategies that play on probabilities. Also, they’re cheaper than stock, so your trades can make a bigger impact for the same usage of capital.
Overall, the biggest difference is that you can set the price and the time period of your trade. This plays out in important ways in later episodes of Step Up to Options.
If you’re interested in trying the trading platform you see in Step Up To Options, you’ll find it at a new home. The dough trading platform is now available under the new tastyworks brokerage firm. The name may have changed, but the same cutting edge technology has only gotten better!