Introduction to Options Trading
Worked Example: These Figures Today
The companies used as examples above, with the live figures behind them. Illustrations of the metric — not a ranking, not a shortlist, and not a recommendation.
| Ticker | Company | Price | Change | Market Cap | P/E | MoonshotScore |
|---|---|---|---|---|---|---|
| SPY | SPDR S&P 500 ETF | $757.83 | -0.60% | $807.3B | 24.9 | — |
| AAPL | Apple Inc. | $332.61 | +1.85% | $4.9T | 37.5 | 89 |
| TSLA | Tesla, Inc. | $363.56 | -1.16% | $1.4T | 308.1 | 53 |
Example Options on SPY, AAPL, and TSLA
“Le MoonshotScore est une note transparente de 0 à 100. Les actions ordinaires cotées aux États-Unis sont notées par rapport à leurs pairs sectoriels selon cinq piliers — qualité de l'activité, solidité financière, valorisation, durabilité de la croissance et momentum — tandis que les ETF, les titres OTC et les valeurs étrangères utilisent un modèle hérité à neuf signaux. Il est conçu à des fins éducatives et pour une diligence raisonnable approfondie, et non comme un conseil financier.”
Questions worth resolving before acting on the screen
What are the main types of options contracts?
The two main types of options contracts are call options and put options. A call option gives the buyer the right to buy an asset at a specific price, while a put option gives the buyer the right to sell an asset at a specific price.
What is the strike price in an options contract?
The strike price is the price at which the underlying asset can be bought or sold when the option is exercised. It is a key determinant of the option's value and potential profitability.
How can options be used for hedging?
Options can be used to protect against potential losses in an investment portfolio. For example, buying put options on a stock can hedge against a decline in the stock's price.
What are some common options trading strategies?
Common strategies include buying calls or puts (directional bets), covered calls (generating income on stock holdings), and straddles or strangles (betting on volatility).
What are the risks of options trading?
Options trading involves significant risks, including the potential for rapid and substantial losses. The value of options can be highly volatile, and they may expire worthless if not managed carefully.