Option trading strategies if you ever wanted to trade options read

Have you asked ever your broker that you were interested in trading? More than likely it tries (your broker) you are talking about investing in options. He insisted on that use alternative probably high risk and only to professional traders you have the options in their investment.



Now, let me tell you a little secret. Why does not know your broker to trade options that you need for your broker as options. Understand that most brokers, salespeople, not investors. They offer, what's hot on the market and drive usually managed money. The reason is that your broker send to their capital funds which manage Portfolio Manager, equities and bonds in anticipation of hitting the market indices is financed.



Investors and some very well qualified intermediaries (hard to find these brokers, but there are some out there somewhere), you specify which version of trade is very profitable and less risky than your broker. Option trading strategies, you can use the profitability of your whole portfolio, resource mobilization and ensure that the stocks in your portfolio.



Option trading strategies, of up to revenue to generate, in your portfolio on a monthly basis, not particularly inventory, you can keep your portfolio and how that on the head and the downside, all at the same time is used.



Now, if you're like me and increases costs for overtime, with opportunities for income, to view your portfolio (as everyone is reading this probably no $ #! t), need to know the trading strategies are at the disposal.



To you, you can implement an example of a large options selling trading strategies, covered calls right now. Option trading strategy is simple, portfolio and monthly income in your stock you poor to generate. How does this options trading strategy is as follows:



Step 1. You own the shares in your portfolio or stagnation in your portfolio (i.e. not up or down move) or shares fell under the purchase price.



Step 2. You sell an option at this moment. Basically all 100 shares you have you option 1, which shares to sell. (Example-you have 500 shares of ABC, you can sell 5 ABC call option contract). This script will sell covered calls.



Step 3. You collect the award on the sale of a call option. (Due to instability and how an option contract long these bonuses.)



Step 4 now you sit back and see what the market will do. Shares can in value and call option worthless, fall down move, you keep the premium and sell new parameters to the calling of the next month, or are constant and move none during the month. Once again the premium holds and write another put option with login details. The last scenario the share starts in the value increase, and you have to sell shares of the call option exercise price. Typically, if you have high volatility, probably not this options trading strategy to use. However, it is your decision.



Here are some questions that I left the above scenario. You can call options in money, time or money to sell. We discuss the terminology of these positions in the next article. But now, I hope that you value, trading strategies in your stock portfolio.



Check is back soon for more information about the second option trading strategies to their increase in your portfolio. You can also subscribe to this page and get future updates directly to your E-mail box. Click on the RSS-feed on the right side.