Learning How Options Work w/ Simulated Real Estate Deals
In this podcast episode we'll use a very easy real estate analogy to drive home some key options trading concepts for beginners.
If you are just getting started learning how to trade options then this show is for you because it'll help give you something to easily reference as a base for comparison with options. And for those advanced traders, it might not be a bad idea to get a little refresher right?
In Today's Show, You'll Learn About:
- Learning how options work by looking at a couple in-depth real estate transactions.
- Call option example with a $100,000 house and how this relates to trading or using call options.
- Understanding how a put option works by looking at buying an insurance policy on the same $100,000 house.
- How down payment, sales price and closing date relate to option premiums, expiration and strike price.