New to the markets and curious about options trading basics?

New to the markets and curious about options trading basics? This beginner-friendly guide explains how options work, why traders use them, and the key terms you must know before placing a trade. You'll learn the difference between calls and puts, how strike price and expiration shape an option's value, and what drives option premiums, including volatility and time decay. We'll also outline simple, risk-aware strategies - such as covered calls and protective puts - that can help you practice structured decision-making while managing downside. Along the way, we'll show you how to read an option chain, estimate breakeven points, and recognize common risks like assignment and liquidity gaps. Whether you want to hedge a stock position or explore income strategies, this overview provides a clear foundation to build skills step by step. Start here to understand the mechanics, the math, and the mindset behind options, so you can move from curiosity to confident, well-prepared first trades.

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