How to trade options call put ??

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Options trading can generate large profits or large losses through financial leverage. Leverage allows investors to protect their portfolio while allowing speculators to increase their profits from price movements. This dynamic creates enticing opportunities that are ever-present in the options market. However, would-be options traders need a clear understanding of how options pricing works, the risks involved, and best practices for choosing the best platform to trade. We've compiled the basics every options trader should know and structured this options trading guide to answer the questions most novice options traders have. 

How to Trade Options 

Understand the Basics Traders who want to get started with options need to understand the following key topics: The definition of an option and the two types of options: calls vs. putsHow options are priced (in the money vs. out of the money). )How options prices change (as measured by the options greeks)How to open an options account and start tradingHow to avoid losing money.

Call and Put Options 

DefinedOptions allow traders to make a leveraged bet on what might happen next to a security's price. Each standard option controls 100 shares and has a set strike price and expiration date. Option contract holders are under no obligation to exercise their right to buy or sell shares. They can let the option expire worthless (and forfeit what they paid for it), or they can sell the options contract to another trader for the amount that trader is willing to pay. If the contract value increases, they can make a profit without ever exercising the option or having to own the stock. However, if the value falls, losses occur.

Calls vs. Puts 

Call options allow you to buy the security at the strike price, which can be anytime before expiry. At expiration, the broker will automatically exercise the option if the price of the underlying shares exceeds the value of the exercise price. Put options give you the right to sell the security at the strike price at any time before expiration. The broker will exercise the option at expiration, but only if the price of the underlying shares is below the strike price prior to the expiration of the contract. The value of call options generally increases when the price of the underlying security increases, while the value of call options generally increases. The value of put options increases when the price of the security falls. However, there are certain fundamental elements that go into option pricing that every trader should be aware of, and the price of the underlying stock is just one of them.