Welcome to Our Resource Centre

On this page, you will find everything you need to understand the basics of options trading. If anything is unclear, or if you would like to discuss what you’ve read here in further detail, just give us a call.

Introduction Articles

What are Options?
11 month(s) ago
15 minutes Read
Call Options
11 month(s) ago
11 minutes Read
Put Options
11 month(s) ago
17 minutes Read
Strike Price
11 month(s) ago
7 minutes Read
Options Pricing
11 month(s) ago
9 minutes Read
Bid and Ask Price
11 month(s) ago
13 minutes Read
Hedging with Options
11 month(s) ago
7 minutes Read
Covered Calls
11 month(s) ago
9 minutes Read
Protective Put
12 month(s) ago
11 minutes Read
Options Assignment
12 month(s) ago
17 minutes Read

An Introduction to Options Trading

For the long-term investor, options are powerful financial instruments that can help you protect your existing investments and earn additional income from the securities you hold. From a shorter-term opportunistic trading perspective, they give you leverage with a clearly defined risk profile; and the ability to trade not just price moves and volatility but also to position yourself for specific events and opportunities within an expressed period of time.

This introduction to options will take you through the basics and give you the building blocks you need to more fully explore the power of options.

We hope you find the site useful and please don’t hesitate to call us if you’d like to discuss how options may benefit your investment goals.

Bid and Ask Price
It is easy to get the bid and ask price confused due to the way they are named, but once you understand a few basic terms it should become clear.
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What are Options?
In their simplest form, options offer the buyer the opportunity to buy or sell, depending on the type of option they hold, an underlying asset of their choosing which has been stipulated in the contract.
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Moving Forward

Now that you have familiarised yourself with our warm-up topics it’s time to jump into the key elements of options trading. Each article aims to give you a wider understanding of options so that by utilising these core elements you can begin to construct and implement strategies that work for you.

Call Options
A call option is a contract between two parties that gives the holder the right, but not the obligation, to purchase an asset at a specific price (strike price) by a specific date in the future (expiration date).
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Put Options
A put option is a contract that gives the buyer the right but not the obligation to sell an underlying asset at a predetermined price within a specified amount of time.
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Protective Put
This can be thought of as an insurance policy. This is commonly deployed when you own the underlying asset
Read More

Important information: Derivative products are considerably higher risk and more complex than more conventional investments, come with a high risk of losing money rapidly due to leverage and are not, therefore, suitable for everyone. Our website offers information about trading in derivative products, but not personal advice. If you’re not sure whether trading in derivative products is right for you, you should contact an independent financial adviser. For more information, please read our Important Derivative Product Trading Notes.

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