People want to start making money quickly. The best strategy for use for that purpose is the trade option. When most people consider the options they consider to be risky. Really, they are for those who don’t exchange it right.
Stock options are used to create leverage and control risks. The strategy that I learned from my mentor is profitable and simple once you get the handle.
There are two types of options, calls and put. There are also two things you can do with any options, buy them or sell them. The most basic strategy for using options is called closed calls. The strategy consists of two different positions.
If you long underlie XYZ traded at $ 15.00 you will sell the call option against it and collect money in your account to sell that option.
Buy 100 XYZ shares with $ 15.00 and sell 1 contract (which is equal to 100 shares) of 15 strike calls with 30 days to expiration and collect a total of $ 1 per share or $ 100.
When expiration you make money if XYZ trades above $ 14.00. Yes, you can make money even when your stock goes down!
• If XYZ is above $ 15.00 you will sell your shares at $ 15.00 and save $ 100 that you collect to sell options at the beginning of trading.
• If you buy a call option, you have the right to buy the underlying specific for a certain time at a certain price.
• If you sell call options, you are obliged to sell the underlying specific at a certain price in a certain amount of time.
• If you buy Put Options, you have the right to sell basic specifics at a certain price for a certain amount of time.
• If you sell Put Options, you have an obligation to buy specific underlying at a certain price for a certain amount of time.
If this first learned about the option, I know it’s confusing. But believe me, the trade option will allow you to start making money quickly.
By selling options, you can start making money quickly by creating consistent monthly income that you can duplicate repeatedly.
Making money in trade is about giving yourself excellence. Through various sales strategy options you can do that. 80% of the expired expired option! So who produces most of the money? That’s right, the perpetrator option.
There are so many ways to make extra money. Trade options are truly able to change your life. There are so many situations that you can enter through the trade option that gives you the edge of mathematics.
Most people think the trade options are at risk. The reason is that most people lose money trading choices! 80% of the expired expired option. So, who produces all the money? People who buy that option or those who sell it.
The reason people say that risky options are because they don’t understand it. If they do it, they will have far different opinions. Just ask the successful market maker what he thinks about the option. The market maker that I followed knows many ways to make extra money.
They will tell a completely different story. Options reduce risk and maximize profits if traded correctly. On this page I will show you some of my favorite strategies that put me on the side of victory. The side where I have a mathematical advantage.
Positive time decay means that every day that passes the option of decay premium or eroded. In other words if XYZ shares traded at $ 20 today and the $ 20 call trades at $ 1.95 then a day later all the other things the same as the option will be traded at a price of less than $ 1.95 because there is less time for it is worth it something.
There are several important parts for my overall trade plan.
1. Price and plan to enter
2. Choose the correct strategy
3. Plan to get out of trade
4. Position size
The four pieces are very important. What I will focus now is to choose the correct strategy.
The following is a spread of my favorite risk options.