Stock Option Trading Strategy : Guaranteeing Profit
Yes, you are right; the stock market is indeed not predictable
. No matter what your friends tell you, the stock market remains unpredictable. In fact the basics of stock option trading can seem to be pretty intimidating if you are a beginning trader. However, once you get the hang of things you will be able to trade stock options like professionals. According to experts in order to make profit from option investing you need something accurate, something precise, something dependable to bank on; it is the solid stock option trading strategy which can help you to earn profit.
Well, it is certainly understandable that as a beginning stock option trader you will feel intimidated when travelling alone in the financial market. This is not just because stock option trading is risky (as it requires you to surrender your hard earned) but also for the fact that as a beginning trader it also exposes you to a new world of stock analysis, trading terminology and foreign strategies. And the fact is, as a newbie you just cannot be uncertain about these terms. Worry not, stock option trading is certainly learnable and what you need is just a solid stock option trading strategy which works well for
stock investing for beginners.
Yes, you need to own a proven stock option trading strategy if you are serious about investing in the financial market.
But still the logical mind never gets tired of asking, what are the best stock option trading strategies.
Consider the following stock option trading strategies
Neutral Strategies: If you are unsure about how the stock price is expected to move it is then better to play safe with these neutral strategies. Also reckoned as the non-directional strategies neutral strategies these includes, butterfly, risk reversal, guts, condor, strangle and straddle option strategies.
Bearish Strategies: In a volatile financial market when you expect a fall in the stock prices, it is advisable to arm yourself with the bearish strategies.
Bullish Strategies: These strategies typically support you in identifying the highest increase of stock prices within a specific time frame.
As a matter of fact, with the growth of the concept of option trading, there are now arrays of stock option trading strategies available. So own the best strategy which suits your trading pattern.
Few of the most practiced trading strategies are,
Selling Credit Spreads: This is a simple stock option trading strategy which helps in your overall financial growth. It is easy and uncomplicated and what you need to do is to analyze the stock market trend and analyze well the group of carefully selected stocks.
Selling the Naked Puts: This particular strategy works well in an upward trending market.
DITM (Deep-in-the-money) options: With this strategy you will be able to buy stocks at stock like exposure, at less than the price of the stock.
Complex strategies: Straddles, strangles, iron condors and butterflies these are some of the more complex strategies.
It is time to stay informed and read everything that you can. In fact it is only when you truly understand stock option trading yourself, then only you will be able to come up with the best
stock option trading strategy.
by: Haris Dason
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