Option Trading Master class

Introduction to Investing and Option Trading

Investing and option trading are two pillars of wealth creation and risk management in modern finance. Investing focuses on long-term growth by acquiring assets that appreciate over time, while option trading involves strategic bets on price movements within a defined period using derivative contracts. Together, they offer investors a combination of growth, income, and hedging capabilities.

What is Investing?

Definition:
Investing is the process of allocating money into financial instruments (like stocks, bonds, ETFs, or real estate) with the expectation of generating a return over time.

Key Objectives:

Wealth accumulation

Passive income generation

Capital preservation

Beating inflation

Common Asset Classes:

Equity (Stocks): Ownership in companies

Fixed Income (Bonds): Lending capital to earn interest

Real Estate: Physical properties generating rental income

Mutual Funds/ETFs: Pooled investments

Commodities and Gold: Inflation hedges