People want to start making money fast. The best strategy to use for that goal is trading options. When most people think of options they assume that there risky. Which in fact, they are for those who don’t trade them correctly.
Stock options are used to create leverage and control risk. The strategies I learned from my mentors are profitable and simple once you get the hang of them.
There are two types of options, calls and puts. There are also two things you can do with any option, either buy it or sell it. The most basic strategy for using options is called a covered call. The strategy is composed of two different positions.
If you were long underlying xyz which is trading at $15.00 you would sell a call option against it and collect money in your account for selling that option.
Buy 100 shares of xyz at $15.00 and sell 1 contract (which is equal to 100 shares of stock) of the 15 strike calls with 30 days until expiration and collect $1 per share or $100 total.
At expiration you make money if xyz is trading above $14.00. Yes, you can make money even when your stocks go down!
• If XYZ is above $15.00 you will sell your shares at $15.00 and keep the $100 you collected to sell the option in the beginning of the trade.
• If you buy a call option you have the right to buy a specific underlying for a certain amount of time at a specific price.
• If you sell a call option you are obligated to sell a specific underlying for a certain price within a certain amount of time.
• If you buy a put option you have the right to sell a specific underlying at a certain price for a certain amount of time.
• If you sell a put option you have the obligation to buy a specific underlying at a certain price for a certain amount of time.
If this is your first time learning about options I know it’s confusing. But trust me, trading options will allow you to start making money fast.
By selling options you can start making money fast by creating a consistent monthly income that you can duplicate over and over.
Making money in trading is all about giving yourself an fashionstype.com. Through various option selling strategies you can do exactly that. 80% of options expire worthless! So who’s making most of the money? That’s right, option sellers.
Option Selling
There are so many ways to make extra money. Trading options is the one that can really change your life. There are so many situations you can put yourself in through trading options that give you a mathematical edge.