Option Trading -

: You own the stock and sell a call against it. This generates immediate income (the premium) but caps your potential profit if the stock price soars.

: You buy a call if you expect the stock price to rise. Your risk is limited to the premium paid, but potential profit is theoretically unlimited. OPTION TRADING

: One contract typically controls 100 shares, allowing for significant market exposure with less upfront capital than buying shares outright. Basic Strategies : You own the stock and sell a call against it

: Risk is strictly limited to the premium paid. However, options are time-sensitive; if the stock doesn't move as expected before expiration, the entire investment can be lost. options are time-sensitive

: The date the contract expires. If not used by then, it usually becomes worthless.