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📝 Options Basics Series: A Beginner's Guide to Understanding Calls, Puts, and Spreads 📌 If you're new to the world of trading, you may have heard the term "options" thrown around, but may not be familiar with what it actually means. In this series, we'll break down everything you need to know about options trading in an easy-to-understand way. ⁉️ What is an Option? At its core, an option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. Here are a few key points to remember about options: ⭐️ One option contract controls 100 shares of the underlying stock or ETF, meaning that buying one option is equivalent to buying 100 shares of the stock. ⭐️ Options can be used to trade in two directions: bullish or bearish. If you buy calls, it's bullish because you want the stock to go up. If you buy puts, it's bearish because you want the stock to go down. ⭐️ You can also sell options to open a position. If you sell calls, it's bearish because you want the stock to go down. If you sell puts, it's bullish because you want the stock to go up. ⁉️ Option Spreads While day trading typically involves just buying calls or puts, longer-term trades use option spreads, which involve simultaneously buying and/or selling different options on the same stock. Here are some examples of option spreads you may come across: 👉 Put Spread: Buying a put and selling a put at two different strikes. 👉 Call Spread: Buying a call and selling a call. 👉 Iron Condor: Selling a put and buying a put, and buying a call and selling a call in a very specific way. 👉 Butterfly Spread: Similar to an iron condor, but the options are centered around one strike. 👉 Calendar Spread: Buying a put and selling a put in two different expiration cycles. 👉 Diagonal Spread: Similar to a calendar spread, but using different strikes. Don't worry if these terms sound complicated - in this Series, we'll explain each strategy in a way that's easy to understand. It's important to note that all of these spreads can be entered with a single transaction through modern brokers. Once you understand the strategy, executing orders is straightforward. 🏁 Conclusion 🏁 Options trading may seem overwhelming at first, but with a basic understanding of calls, puts, and spreads, you'll be able to make informed trades that can help you reach your financial goals. Stay tuned for more insights on how to manage and execute these strategies with ease! #optionsbasics #optionstrading #investing #callsandputs #bullish #bearish #sellingoptions #optionsspreads #longterm #trading #tradingstrategies #stocks #stockmarket #education #learn #publicclassroom
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Stocks and ETFs.
Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

Alternative Assets.
Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). This content is not investment advice. These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in an Open to the Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public, and Public (or an affiliate) may earn fees when you purchase or sell Alternative Assets. For more information on risks and conflicts of interest, see these disclosures. An affiliate of Public may be “testing the waters” and considering making an offering of securities under Tier 2 of Regulation A. No money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC or as stated in the offering materials relating to an investment opportunity, as applicable. An indication of interest to purchase securities involves no obligation or commitment of any kind.

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JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

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