Options education

Understanding options before start trading them is crucial for any investor, as it involves a higher level of complexity compared to traditional stock trading. Options provide the ability to leverage positions, hedge against potential losses, and generate income, but they also come with significant risks, including the potential for substantial losses. A thorough comprehension of the various types of options, such as calls and puts, as well as the strategies that can be employed, is essential to make informed decisions. Additionally, understanding the factors that influence options pricing, such as volatility, time decay, and the underlying asset's price movements, can help traders develop effective risk management strategies. Without a solid grasp of these concepts, traders may find themselves exposed to unforeseen risks and financial losses.

Euronext published series of articles to help you better understand the concept of option trading, the possibilities it offers and the risks involved. New articles are added on a regular basis so please revisit to learn more or keep your knowledge up tot date.

Option basics

A new series that will become available staring spring 2025. We will explain basics such as what is an option and what can they be used for.  

Option strategies

The concept of option strategies revolves around the use of various combinations of options contracts to achieve specific financial goals, such as maximising profits, minimising risks, or generating income. These strategies can range from simple approaches, like buying calls or puts, to more complex ones, such as straddles, strangles, spreads, and iron condors. Each strategy is designed to capitalise on different market conditions, whether it be bullish, bearish, or neutral. By understanding and implementing these strategies, traders can tailor their positions to align with their market outlook and risk tolerance. Additionally, option strategies can provide flexibility and precision in managing investments, allowing traders to hedge against potential losses or enhance returns. Mastery of these strategies requires a deep understanding of the underlying principles of options, including their pricing, volatility, and time decay, as well as a keen awareness of market dynamics.

Daily index options

Learning about daily index options is essential for traders looking to capitalise on short-term market movements and enhance their trading strategies. Daily index options, which expire at the end of each trading day, offer unique opportunities for active traders to engage in precise, time-sensitive trades. These options allow traders to speculate on the daily fluctuations of major market indices, providing a way to potentially profit from both rising and falling markets. Understanding the mechanics of daily index options, including their pricing, expiration, and the factors that influence their value, is crucial for making informed trading decisions. Additionally, traders must be aware of the heightened risks associated with the short lifespan of these options, necessitating robust risk management practices and a keen awareness of market conditions. By mastering the intricacies of daily index options, traders can better navigate the fast-paced environment of short-term trading and optimise their investment outcomes.

Options E-learning

Euronext’s ”Options Investing E-Learning” series covers the 6 main topics you need to know when investing in options. This series of short animated videos is specifically designed for investors who are considering starting options trading.