Butterfly option strategy is a neutral strategy. It is used when you think that the stock price will not move a lot, or trade in narrow range. The butterfly spread is a combination of a bull spread and a bear spread. The bull spread strategy is implemented by selling an in-the-money (ITM) put option and [...]
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Straddle option strategy
Straddle option strategy is a non-directional strategy. This means that you can make money without knowing where the market will move. It doesn’t matter if it moves up or down, you can make money if it moves either way. The position is created by purchasing the same number of call and put options with the [...]
Read the rest of this entry »Best option strategy for income
Do you know that there are option strategy that can gives you monthly income? The income will be generated when you sell call option or sell put option. The best option strategy for income in my opinion is selling naked puts. It is called naked put because there is no position in underlying stock. If [...]
Read the rest of this entry »Get rich with options tips
1. Buy option with longer time to expire. This means you have more time to be right. But this kind of options is more expensive because it has more time value. I usually buy options with more than 3 months days before expiration. 2. Options usually lose most of their value in the last 30 [...]
Read the rest of this entry »Iron Condor Option Strategy
Most option strategies are are centered around making the right call on the direction of a stock. This approach relies on the accuracy of guessing the direction of the stock. Thus the chances of profiting are low. By using a combination of Bull and Bear Credit Spread, an Iron Condor position can be created. It [...]
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