Wise Stock Research Academy

Options Trading – Beyond Buying Calls and Puts

Introduction

Options trading is often misunderstood. Many beginners focus only on buying options without understanding Greeks, implied volatility, and risk exposure.

True options mastery requires deeper knowledge.

The Foundation of Options Trading

Before trading options, one must understand:

  • Volatility cycles
  • Option Greeks (Delta, Gamma, Theta, Vega)
  • Implied volatility
  • Time decay

Buying vs Selling Options

Option Buying

  • Limited risk
  • High reward potential
  • Time-sensitive

Option Selling

  • Higher probability
  • Requires margin
  • Risk management critical

Professional traders understand when to buy and when to sell.

Conclusion

Options trading becomes powerful when executed with structure, discipline, and proper risk frameworks.

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