Chapter 2 Major Learning Points
In this chapter you have learned:
how to read options prices on your screen.
how options contracts work and that with stocks, a contract represents more than one share.
how options expiration dates and exercise prices work.
margin—its benefits, risks, and characteristics.
the different types of trade orders in the market.
leverage with options.
a brief understanding of Delta.
Before we go on to explore some options strategies, it’s important that we cover some basic concepts of Fundamental and Technical Analysis so that you can begin to understand how to spot possible stocks (targets) for the strategies you’re going to learn to apply later in this book.
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