Options Trading Strategies: 25 Option Trading Strategies That Can Bring You Profit

By Renae Snyder

Are you interested in learning how to trade options? 

In this book, you will learn 25 options trading strategies to help maximize your profit and minimize your risk. Brand new to investing? Don’t worry! We include a primer on what options tradings is and what you should know about it. 

Here is what you will learn after reading this book:

-The basics of options trading;

- Things to think about before you get started;

- The common mistakes made by new traders;

- What you should know about the options trading chart;

- Strategies for a bullish market;

- Strategies for a bearish market;

- Strategies for a neutral market;

- How to figure out the maximum profit for each strategy you use;

- How to figure out the maximum loss you might run into.

This book will get you well on your way to understanding and successfully engaging in options trading. If you’re ready to make more money or to expand or even begin your investment portfolio, then you need this book. Additionally, you will learn about option trading strategies in plain English. That’s right – we wrote this book just for the you: the average person. You won’t need any prior experience or an MBA to get started.

Now is the time to get ready for the future. Are you ready to invest?

• Language: English
• Publisher: JVzon Studio
• Release date: Apr 10, 2017
• ISBN: 9781386562870

Book preview

Introduction

Most likely, you picked up this ebook because you want to make money with options trading. Maybe you are brand new and are just starting your journey into the world of investing. Maybe you know a little bit about investing and you are ready to learn more. Either way, it’s always a good thing to become more educated...after all, it’s your money that is at stake.

Learning option trading can help you profit regardless of the how the market is currently. You just need to know how to do it and what strategies you should employ.

Since this is the introduction, let’s start with the basics. What is a stock option? Generally known as an option, this is a type of stock that usually has two types: puts and calls. A stock option creates a contract between two parties. The holder agrees to purchase or sell the right, without obligation, a certain number of their stocks at a particular price to the option seller. This happens within a fixed time frame.

There is other terminology involved, too. A strike price is term that you will see when you are trading options. This is the price that the option will be sold when someone exercises their option to buy. It is related to market value. A premium can also be seen in some option trading situations. If it is present, the buyer will pay the seller a specific premium for taking on the risk that comes with purchasing. The premium often depends on the strike price and expiration date. The expiration date is the date that the option contracts expire. If it expires, there is no longer a right and the stock option is no longer worth anything. This date depends on the type of option. If you see the term option style in an option contract, it means that it is either American style or European style. The way that the options are exercised depends on which type of option it is. An underlying asset is something that the seller must deliver to or purchase from the option holder if this option is exercised. A contract multiplier lists the quantity of the underlying asset that will be delivered if