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OPTIONS EDUCATION

Learn options trading step by step. All simulated, no real money involved.

πŸ‡ΏπŸ‡¦ Equity derivatives trade on the Johannesburg exchange through some brokers; many investors use international brokers for US options.

Core Concepts

What is an Option?

An option is a contract that gives you the right, but not the obligation, to buy or sell a stock at a specific price before a certain date.

Think of it like a reservation, you reserve the right to act, but you don't have to.

Calls vs Puts

CALL OPTION

  • β€’ Right to BUY at a set price
  • β€’ Profit when stock goes UP
  • β€’ Max loss = premium paid

PUT OPTION

  • β€’ Right to SELL at a set price
  • β€’ Profit when stock goes DOWN
  • β€’ Max loss = premium paid
Quick Quiz

If you think Apple stock will go UP next month, which option would you consider?