Most people are looking to earn money as quickly as possible. Option trading is the most effective strategy for achieving this goal. Options are perceived as risky by most when people consider them. They are risky for people who do not know how to trade quotes trading tips them.
Stock options help to reduce risk and increase leverage. My mentors taught me simple, yet profitable strategies that are easy to use once you have mastered them.
You can choose between two different types of options: calls and puts. With any option you have two options: buy or sell. A covered call is a basic option strategy. It is composed of different positions.
Selling a call against underlying xyz, which trades at $15 would allow you to collect the money from selling this option.
Purchase 100 shares of xyz for $15.00, and then sell one contract (equaling 100 shares of stock), of the 15 strike options with 30 calendar days to expiry and receive $1 per share.
If xyz trades above $14.00, you will make money on expiration. It’s possible to make money, even if your stock price drops!
* If XYZ goes above $15, you’ll sell your shares for $15.00. Keep the $100 that you received to purchase the option at the start of the trade.
You can buy call options to have the option of buying a specific asset for a given period at a fixed price.
You are required to deliver a particular underlying within a given timeframe if you choose to sell call options.
You can sell the underlying for a given price within a defined time frame if you purchase put options.
You are required to buy an underlying specific at a given price and for a period specified if you choose to sell a Put Option.
You may be confused if this is the first time you’ve heard of options. You can start earning money very quickly by trading options.
You can make money by selling options. This will create a monthly income which you can replicate over and again.
To make money trading, you need to have an edge. Using different option strategies, you can accomplish this. Options expire with a value of 80%! The question is, who makes most of the profit? Right, the option seller.