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now that you understand why options exist Im going to show you ways you can trade options to make a profit so most of your favorite companies that you use everyday have stock options and you can trade them right from your computer cell phone or tablet there are two types of options there are calls and puts if you buy call you want the stock to go up if you buy a put you want the stock to go down now since there are two sides to every market you can also do the opposite where you would sell the option as an opening trade and hopefully buy it back at a lower price as a closing trade this will make more sense in a second option prices are based on three elements of its underlying stock the first one is time to expiration in the last video we talked about how options are basically insurance and of course you pay money for this insurance now the thing about insurance is you dont just get to pay a one-time payment and have insurance forever you have to pay month after month to keep your in
