Do you want to go beyond the binds mutual funds, and stocks in your portfolio? Then it is probably the best time to invest in options trading. With the diverse options available, you can gain quickly, although the risks will be higher. To learn the best strategies and make the most of them, you should ideally join a good Options Trading course to understand the complications of the process.
The course can be life-changing
While the rewards are high in options trading, so are the chances of losing. If you want to enjoy the benefits, you should certainly enroll yourself in a course and learn the vital facts and strategies. In this post, you will get a few hints to the most common strategies that you may learn on joining the course.
Strategy #1: Long call
This is one of the best strategies that you will learn from the Options Trading course.
- You can buy a call going by the name of “going long call.”
- And you expect that the stock price will exceed the strike price by the time of expiration of your call.
If the stock soars, you can earn multiple times the initial investment. The upside of the long call is basically limitless. If the stock continues to surge before expiration, your call will keep climbing higher. That is why the long calls are extremely popular in waging on a rising stock.
But the course will also show how the long call can cause complete loss of the stock finishes below the strike price by expiration.
Strategy #2: Explanation of covered calls from Options Trading course
In a covered call, you will sell a call option with a twist. The trader will sell the cal and simultaneously buy a specific number of stocks underlying the option on the sell of each call.
The catch is that you are minimizing the risk by opening the source of income by buying the stocks. You will expect the stock price to be below the strike price by expiration. If the stock price is above the strike price by expiration, you have to sell the stocks to the call buyer at the present strike price.
Strategy #3: Long put
If you are following this strategy of the Options Trading Course, you will buy a “going long” put with the expectation that the stock price will be below the strike price by expiration. Of course, you stand a chance of gaining multiple times, and also the chance of losing if the stock price surges suddenly.
There is a gain that can be significant, but as the stock can never go below zero, it will cap the upper limit of earning. It is thus a simple way to wager on the declination of a stock. So it is definitely safer than shorting the stock.
When to use
All the above strategies will work the best if you learn from the Options Trading course how to use them at the right time. You have to assess the condition and apply the right strategy for earning the highest profit.