stock option trading strategies

Discussion in 'General Business' started by financebanter, Aug 18, 2010.

  1. #1
    Ponder on some of the most commonly used stock option trading strategies

    Neutral Strategies: Neutral strategies are typically used by option traders who are to some extent unsure about how the price of a stock is expected to move. These are also called non-directional strategies. They are: risk reversal, guts, condor, butterfly, strangle and straddle as the typical option strategies. If you are unable to identify the price movement or expect minimal movement the best option to bank on is a neutral strategy for option investing.

    Bearish Strategies: These strategies are pretty helpful for traders who expect a fall in stock prices.

    Bullish Strategies: These are ideal for the traders who are expecting an increase in the stock price. Bullish strategies help the trader in identifying the highest increase of stock prices within a specific time frame.

    Yes, you have heard that right option strategies are essential instruments to bank on when looking for success in the options market. However it is just not the timely, effective and correct option strategies which matters but also carefully studying stock option trading strategies prior making an investment.
     
    financebanter, Aug 18, 2010 IP
  2. nagarasapandi

    nagarasapandi Peon

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    #2
    How to start the investment in Stock Market?

    How to get handsome income from share market?

    Please let me know
     
    nagarasapandi, Aug 19, 2010 IP
  3. Seqqa

    Seqqa Well-Known Member

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    #3
    Personally I buy stocks like I buy everything I like to buy quality merchandise at kocked down prices, that's always worked for me.

    C
     
    Seqqa, Aug 20, 2010 IP