There are really only a few basic options strategies, and everything else is built on these in some form. This range of possible strategic designs is what makes the options market so interesting, challenging, profitable... and also nice and risky.
If you want to go fast and get some serious movement, well, you have to climb on board the rollercoaster first, even if it scares you a little bit. Okay, here we go. Today we'll take a deeper look at four of the eight options strategies we use on a routine basis.
Ahh, the options listing... Trust me, it isn't as bad as it looks. An options listing gives you the status of the four standardized terms you already know: Type of option, expiration, strike, and the underlying security.
The hardest part of learning about options trading strategies is getting used to the language. Once you nail that, you're most of the way there.Here are the terms you are going to need to learn to understand and use options.
A lot of experienced and sophisticated investors shy away from anything that involves paperwork. They think they're not qualified or ready, or simply that it's not worth the trouble. Don't be one of them.
If you feel like Alice in Wonderland when you start to look into options trading strategies, you're not alone. Even so-called "experts" struggle with options. It gets even uglier when they attempt to bring it down to earth.