Decoding The Best Options Trading Strategy

Any trader would agree that trading strategies are not one size fits all. Different strategies work for different people when it comes to reaping consistent profits. Here are a few common strategies that work for most people:

Best Options Trading Strategy

Option Writing

Option writing is one of the most common methods used by traders for regular profits. Since an option loses its value as time passes, the seller always has at least one factor working in their favor. Someone who writes options has a fairly high chance of making a small profit every month, but the only consequence being huge losses when things go against the seller.

Covered Calls

This strategy sells calls on stocks you already own or purchase with the call sale. The Covered Call strategy is great because it generates income on stocks while you wait to hit your target stock price. This strategy is very likely to come close to your quest for consistent profits over the long-term. The only drawback is that it requires substantial capital to be effective. 

Other Options Strategies

Debit spreads are a great way of making consistent returns when the market direction is in your favor. Credit spreads are highly profitable too. While iron condors are quite safe as well, however they can be a bit too complicated for a beginner.

Buy Options

It’s a little-known fact that the top investors in the world generally buy options because theyoffer limited liability and unlimited potential. If used correctly, buying options can be very profitable. In fact, buying options as part of a portfolio of option investments is one of the least understood strategies to generate consistent profits. 

Options Trading Quiz

Where to Begin

For someone who is only getting started, it might be a good idea to take up an options trading quiz before going all in to get a precise idea of your knowledge about options and options trading. Many investors think they understand options, but it is only when they attempt a quiz that they realize how little they actually know.

Felix Frey is an experienced options expert who is known for creating the best options trading strategy with results that have generated consistent profits for his clients. He has also created one of the best options trading tutorials to get you started as an expert.

Feel free to visit www.optionsgeek.com to learn more.