One thing I WISH I knew starting out with trading was the key concepts of having the right, but not the obligation, when it comes to trading options contracts.
ATTENTION: The difference between buying to open (BTO) an option, where we anticipate the contract value will increase, and selling to open (STO) an option, which involves the obligation side.
We also talk about how options trading allows us to profit from the value changes of the contracts themselves, without having to buy the underlying stock shares.
