How Do You Use Option Trading Strategies?
Options trading is buying the ability or right to purchase or sell a stock at a certain price in the future. In reality, it gets more complicated but essentially that is the basic idea. It is an extremely risky financial vehicle but there are options trading strategies to minimize this risk. Analyze the current market conditions. You will utilize certain option strategies when the market is rising, falling or trading neutral. The more volatility in the market the greater the chance an option strategy will work. Decide the best option trading strategy for the given market condition. There are over seventy individual option-trading strategies but most work given a certain set of market conditions. For instance, in a rising market, you want to sell a put option or buy a call option. In a falling market, you want to buy a put option and sell a call option. These are the simplest option trading strategies. For more information, see the resources section. Research the stock option available
