How to Trade Options in Toronto

If a stock is undervalued, buy it. If it’s overvalued, sell it. But what do you do when you think a stock is sorely undervalued or overvalued and you don’t have enough money to take a meaningful position?

That’s where we at Learn-To-Trade.com believe that learning how to trade options in Toronto to take advantage of these opportunities comes in. An option is an investment strategy that can reward investors with greater profit for less risk when compared to the traditional buying and selling of stock.

If you learn how to trade options in Toronto, you can benefit from a rise or fall of a stock price without actually owning it. Learn how to trade options so you can leverage your funds to control more stocks.

Learn how to trade options and you can also position yourself for a move in the stock price, even if you don’t know which way the price is going to go. With options, investors can control stocks a fraction of the share price of the stock. It’s also one of the only investment strategies where you can protect yourself from losing money if a stock price falls. Basically, with an option, you can make money on a stock whether it’s going up or down.

Like the broader stock market, successful options trading is about finding the right strategy to use. That’s why it’s important to take the time to learn how to trade options in Toronto.

It’s also important to understand what options are and how they work. The basic principle to options investing is pretty straightforward: invest a (relatively) small sum today to control something worth a larger sum in the future. Options traders anticipate that the price of an investment will move either up or down before a certain date, then they can close their option position and realize their profits.

Options are used by investors to hedge their stock positions and create wealth. In its simplest form, an option is a contract between two parties that gives an investor the right to buy or sell an underlying security at a specific price on or before its expiration date. While options give a buyer a right to purchase a stock, they are not obligated to buy it. Similarly, options also give a seller a right to sell, but not an obligation to sell. At the same time, options have limited life, and if an investor isn’t diligent, they can lose the entire option investment.

Learn Option Trading Strategies

There are two types of options: a call option and a put option. A call option is a contract—not an obligation—to buy a security at a certain price on or before a certain date. An investor might consider a call option if they believe the price of a security is going to increase. As the price of the security nears the agreed upon price, investors can purchase the security or sell the option for gains right away.

A put option, on the other hand, is a contract—likewise, not an obligation—to sell a security at a certain price on or before a certain date. Put options are a great idea if an investor believes the price of a security is going to fall. As the price of the security nears the agreed upon price, investors can close their put option and take immediate profits.

Even though options trading is built around using a call option, put option, or a combination of the two, there is still a large number of different strategies an investor can use.

To be a successful option trader, we at Learn-To-Trade.com believe that investors need to learn options trading strategies. Two basic options trading strategies include the covered call and the straddle. With a covered call, the stock owner can choose to sell a call option against their stock to others to create cash flow. By writing a covered call, the stock owner gives the right to someone else to buy their stock at an agreed upon price (strike price) on or before the call option expires.

A straddle option strategy is a great investing strategy for someone who thinks a stock’s share price is going to make a significant move, but doesn’t know which way. The key with a straddle option strategy is that the stock price must make a major move to the upside or downside; if the stock price only makes a small move in either direction, the investor will take a loss.

Even though the straddle option is a beginner strategy, it can also be very risky. When it comes right down to it, there will always be risks when it comes to the stock market. That’s why it’s important to learn option trading strategies in Toronto by taking an options trading course from a professional trading firm like Learn-To-Trade.com. Our experienced team of traders provides members with all the tools necessary to trade options. Contact us for more information!

Testimonial 1

Don’t hesitate jump into it right now. You will be glad you did!

Susan C

Learn To Trade
4.0
2014-08-19T04:45:40-04:00

Susan C

Don’t hesitate jump into it right now. You will be glad you did!

Testimonials 2

The ongoing support has been the reason for my success

Patrick L

Learn To Trade
4.0
2014-08-19T04:46:33-04:00

Patrick L

The ongoing support has been the reason for my success

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade
4.0
2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade
4.0
2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade
5.0
2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade
4.0
2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade
4.0
2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade
5.0
2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade
4.0
2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade
5.0
2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade
4.0
2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade
4.0
2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade
5.0
2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
Learn To Trade
5.0
2016-10-07T08:56:52-04:00
Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
4.0
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