Simple best option trading strategy ever


Thus, if the stock declines in price, you may incur a loss, but you are better off than if you simply owned the shares. Cash-secured naked put writing. Sell a put option on a stock you want to own, choosing a strike price that represents the price you are willing to pay for stock. You collect a cash premium in return for accepting an obligation to buy stock by paying the strike price.

A collar is a covered call position, with the addition of a put. The put acts as an insurance policy and limit losses to a minimal but adjustable amount.

The purchase of one call option, and the sale of another. Or the purchase of one put option, and the sale of another. Both options have the same expiration. When looking for the most profitable options strategy, do not look at the magnitude of profit.

Rather, look at factors such as risk of loss, the technical analysis requirements, and the potential to develop a safe, reliable trading plan that generates regular monthly or even weekly income A Historical Perspective December 8, Ever wondered what is the most profitable options strategy?

To be sure, it is a controversial questions. But, in my infinite genius, I have finally figured it out Looking for some further study on option pricing components? Here is my top pick:. This course has serious "WOW" factor at amazingly good value. Apart from all the e-books that you get, there is more than 24 hours worth of video material.

If you can find a more thorough training at better value, I will eat my hat after you have passed it through the sewers of Paris! Most Profitable Options Strategy With over 40 different variations on techniques to trade options, it is pretty hard to decide which is the most profitable options strategy. Is Options Trading Profitable? What is the Most Profitable Options Strategy?

Articles for Newbies What is Option Trading? Or the purchase of one put option, and the sale of another. Both options have the same expiration. Thus, the higher priced option is sold, and a less expensive, further out of the money option is bought. This strategy has a market bias call spread is bearish and put spread is bullish with limited profits and limited losses.

A position that consists of one call credit spread and one put credit spread. Again, gains and losses are limited. Diagonal or double diagonal spread. These are spreads in which the options have different strike prices and different expiration dates. The option bought expires later than the option sold 2.