Hello and welcome to the Public Pulse. Looking to find out more on options trading? What is it? How do you do it? Well, BMO has evolved its InvestorLine trading platform, introducing industry-leading tools all with the goal of empowering investors. The platform provides features like Multi-Leg Orders, Options Screener, and Strategy Builder. They are intuitive and user-friendly, regardless of experience level – great for seasoned pros or those just getting started … These easy-to-navigate features adapt to your investing style.
The platform also includes mini-lessons with quizzes to inform and educate both new and experienced investors, to get “in the know” on options trading.
The platform covers the benefits of options trading, how options are different from stocks – in that “They don’t last forever—they have an expiration date.” and Options trading is anchored in three categories: speculation, income generation, and risk management.
There are details and definitions that are important to know and understand …. the lessons move you through option contracts, strike price (agreed-upon price at which the asset can be bought or sold) and the expiration date ( the final day the option can be exercised).
On the topic of Options contracts, the lessons clarify the difference between a ‘call’ or ‘put’ options as key points such as:
Options can also be traded – bought or sold in the market before they expire, which is often where much of the options trading activity occurs
There are examples to work through as well as the difference between in, at or out-of-the-money options.
If you are looking for a good start on options trading or to expand your knowledge, check out BMO’s enhanced Investorline trading platform aimed at giving new and experienced investors the right tools to educate and execute options trading.
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