You may be new to option trading but have knowledge of buying puts & calls. Puts & calls are the 2 basic option strategies that rookie traders tend to lean towards. These strategies are very low risk, simple and much easier for a rookie trader to handle. When buying a put you would want the underlying to drop in value and when buying a call you hope that it will rise. No matter what is done the risk taken is limited according to the amount of premium you pay or buy the contract for. If for whatever reason the contract turns worthless you only loose the cost and nothing else.
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No matter the level of experience you have we all see this is safe and profitable. It is a potential option which can provide tremendous return without betting a lump sum. At the same time however we all wish at some point to advance and become more of a professional when investing in these options. The numerous options that can be done only make it that much easier to profit. Let us now take a look at some of the options strategies you might want to explore.

Being a seller of an option contract means that you are writing options. This can cause a risk depending on the circumstances but not including covered calls. This is considered as one of many conservative options available to you. With this option it means that writing strategies because your contract is backed up with the ownership of the stock. Perhaps you own 400 shares of Microsoft and you know that Microsoft is not very volatile; this makes it ideal for cover call writing. It is best when writing calls that you write them on the stocks that are not very volatile this is because you are going to be writing out of the money calls to collect an income as a premium. May be they are trading at $24. You may write calls for $35 strikes on the month’s contract and the only risk would be if the stock grows higher than the price before expiration. It is clear to see why it is you must own the stock that you are writing cover calls for and why they should be range bound.

A married put trade is only considered a popular conservative strategy. These puts are very much like covered calls meaning that you already own stocks and will be buying an certain amount of puts that is equal to the exact number of shares owned. You will be long on these puts but by owning the stock it only acts as the hedge which means that you can still make money is the stock drops. Spreads are also various option strategies that you can use. A strategy most popular of the set is known as bull call spread. This is when you are buying calls at a strike price and then selling at a greater price. The underlying security and month of expiration must be the same for this to be called a bull call.

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