Do you want to put some leverage into your investments? In order to do this you will need to learn the basics of option trading. When investing with option trades, you will need to carefully look at your choices. You should consider “puts” if you think that the index will go down in a short period of time, and if the index or stock is on its way up quickly, then you should buy “calls”, thus the 2 option trades being “puts and calls.”

Options are a great instrument that each investor should educate themselves on. Learn how to trade options in our lifetime options course.