Trading Basics

The Option's value depends on the movement of the Underlying Stock.

As such, to trade Options:
1. First, we determine which Direction the Underlying Stock is most likely to move,
2. Then, we select the appropriate Option.

Stock Price Movement

To make a profitable trade, we ask 2 questions:
(a)  which stock is going to move, and
(b)  which stock is going to move right now?

There are thousands of stock in the stock market. The key question then becomes HOW do we pick stock that is ready to move up (or move down) NOW? This process is called “stock trading picks”.

Generally there are 2 stock trading picks method:
(1) Fundamental Analysis
(2) Technical Analysis

 Next: Technical Analysis ...