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Stocks To Watch This Week - Stock Picks With POTENTIAL - Simple Option Trading
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By Lucas Downey Updated May 29, Traders often jump into trading options with little understanding of the options strategies that are available to them. There are many options strategies that both limit risk and maximize return. With a little effort, traders can learn how to take advantage of the flexibility and power that stock options can provide. Here are 10 options strategies that every investor should know.
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Limitations on capital. Stronger or weaker directional biases. Of course given the risks, which are frequently greater and more complex, options are not for everyone. By sorting each strategy into buckets covering each potential combination of these three variables, you can create a handy reference guide. You could even print it out and tape it to your wall.
However, this does not influence our evaluations. Our opinions are our own. Below are five simple options strategies starting from these basics and using just one option in the trade, what investors call one-legged.
Stock price at expiration.