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How To Trade Options | Getting Started

Updated: Jan 9

So you want to start trading options? Let's break down the basics of how to get into an options contract and what an options contract is. We'll use $MARA as an example and work through a hypothetical scenario.

I believe that $MARA will go up dramatically for the $BTC Bitcoin halving in April 2024 and I want to capitalize on that. The problem is, $500 doesn't really buy me very many shares, that's where options shine. I can move the needle much harder leveraging with options, but keep in mind, this can also go the opposite way and I could lose my money just as fast as I gained it. Lets do an example below: Step #1 - Get A Broker To Trade Options On Our first option is Robinhood which is a great platform for investing and swing trading, which is where you hold an options contract for a very long time. You can download Robinhood here and receive a free share for joining. [CLICK HERE]

Another broker option is eToro which you can find [HERE]

Step #2 | How To Buy An Options Contract In the top of the screen, phone or desktop, you will see a search bar, as it appears below.

We are using $MARA as stated above as an example for this article. When I type in the ticker, wich is the symbole to pull the stock up "MARA" I will click on it and the stock will pop up and appaear as it does below.

Now, from here I can go to the bottom right of the screen (Desktop), where it says "Trade Mara Options" and click that. On mobile it will say, "TRADE" then select "Trade Options"

Next, it wil look like this. The blue arrow is pointing to the share price. The white arrows are pointing to "Buy" and "Call"

Call = You are bullish, meaning you expect the stock to go up. Put = You are bearish, meaning you expect the stock to go down. Step #3 | Choosing an options contract

If I expect $MARA to start going up AFTER the Bitcoin Halving in April of 2024, I do not want to choose an options contract that would expire before that date. The furhter out I go on expiration, the less risk I have but the more money it costs. So I am going to choose Janurary 17, 2025 as seen in the picture below.

Remeber I said I only have $500 to spend? I can afford to get the $30 call for Janurary, 17 of 2025. This is the contract I will be choosing espically since I believe $MARA will be going well past that.

That's it, you bought your first options contract! Now, lets answer some common questions, and keep in mind, you can always ask questions in the ZTRADEZ discord [HERE] Level up your options trading knowledge with ZTRADEZ's free Discord server, offering diverse trading styles and a supportive community of traders of all experience levels.

Questions & Answers:

Q: Do I have to hold the options contract until expiration? A: NO! You can get in and out of it within 10 seconds if your fingers can move that fast.

Q: What happens when I hold the contract past expiration? A: You lose everything, 100% of what you had. Q: What's the breakeven? Do I have to hold it until it hits that price to profit? A: No! The moment $MARA stock starts to move up, you start to profit. Q: What happens if it goes down? Will I lose money? Can I lose more than I put in? A: Yes, if $MARA does not go up, or goes down, you will lose money. The options contract rotts with time, it rotts faster the closer to expiration. This is why going far out on the expiration is safe. No, you cannot lose more than you put in. [DISCLAIMER]

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