Options Trading Strategies

Options trading strategies are numerous, but the choice of the ideal strategies depends upon the risk factor that you can bear with your trade business. Option trading is thought to be very risky, but option trading is safer and very profitable as compared to the stock trading. The most attractive thing about this type of option trading is that you have a number of different option trading strategies as options. This the biggest advantage to make progress in the business of trading in the shortest time. Broker fees are very high for trading. In other forms of trading, the fee is not generally higher. There is very wide profit margin in this form of trading that can easily compensate the higher fee also.

The main logic behind the risk factor involved in option trading is that the employers or contractors that ship or carry your products to the user want to earn more and in this greed they promote your products and spend more money to get the profit in shortest possible time. There are sometimes insanely high profit margins in this type of trading that you can not even imagine. You can also get burnt easily if you have some greed to earn higher in the smaller fraction of time. The only key you have to run the option trading business successfully is to have a solid business plan to overcome the losses and minimize the expenditure to meet the future expected losses. There are no hard and fast rules to follow in planning option trading strategies; you only need to proceed carefully.

Here are a few business trading strategies to promote your trade and get the maximum out of your time and money.

1. Selling Credit Spreads: You can easily grow your portfolio on the weekly basis. You will have to work a little and only 30 to 40 minutes are needed for this task. Don’t overanalyze anything. You will have to only analyze the market and review your plans on weekly basis and then move according to the new set strategy and plan. This is really a profitable plan and a lot more easily as compared to other types of trading involving high failure risk.

2. Naked Puts: This is a very excellent idea and its can really boost your business as it has mostly a raising trend. There is a higher margin needed for this strategy. The risk involved is low and you can get the similar profile at minimum risk factor.

3. Deep-in-the-money DITM options: This is known as a swing trade strategy. You can easily get stock at about 50% rate and get the profit with a higher margin. There is no buying or hosting of stocks involved and you can get the returns within a period of 3 to 10 days.

4. Covered Calls: Option trading strategies can be planned for selling covered calls. If you already have a stock at your place, you have the option to reduce the stock cost by only selling the covered calls on monthly basis. If you own a stock for sentimental reasons, you should not be involved in such kinds of option trading strategies to ruin your trust. Therefore, you should move to the next stock if the current stock is sold out quickly.

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