How Do You Use Option Trading Strategies And Profit?
Option trading strategies can be an incredible money making opportunity. The problem that many investors have is that they don’t understand the concept of stock options, let alone the many different strategies. Are you ready to jump start your investment portfolio and make up for lost ground? Using a combination of option trading strategies can make all the difference. Follow these steps to get started. Purchase 100 shares of your favorite stock, or identify a current holding where you have at least as many shares. Search for call option contracts that are one or two months in the future with a strike price above the shares current price. As a rule of thumb, look for a call contract that is one or two steps above the price of the stock. This option trading strategy is known as a covered call. Create a list of some of your favorite stocks and look for call contracts that are several strike prices below the current share price. One of the most profitable option trading strategies, buying
