Strategies You Can Use In Options Trading

Stock trading in general is already quite complicated. This is why, most of the beginners end up with hiring brokers to guide them which are also quite expensive. But then again, they have to endure the situation so that in the future, they can stand alone. This is the usual course of life, if there is something you want to become, you have to be dependent to the pros at the start so that the next time, you will also be the one to be depended on. This is the usual situation in the trading world.

One type of stock trading is the options trading. This is where options, which are actually contracts, will be bought and the buyer will be referred to as the holder while the seller is of course the owner. Just like the conventional stock trading, option trading is also quite complicated and in fact, a lot of traders find this type even harder. Do you feel the same way? It is understandable though as it would be a  great surprise if you say you find this simple as even the experts are feeling the same way at the start. One thing you have to first learn though is about options Greek. Yes, you have to learn about their terms like what they stand for.

As mentioned above, you have to be dependent to the experts and one of these experts is the Steady Options team. You can easily check for their official site online and these are the strategies they use which you can also learn about:

  • Iron condors
  • Calendar spreads
  • Butterfly Spreads
  • Straddles and strangles
  • Pre-earnings calendars
  • VIX calendars, strangles and diagonals
  • VXX calendars and diagonals

To learn more about these mentioned strategies, you should check out online through their official website. They explain the key elements for every trade and they are:

  • What strategy is apt for a particular stock
  • The right time to be part of it
  • The optimal entry price
  • Backtesting of previous cycles
  • The right adjustments
  • What will be the profit target
  • How theta, vega and gamma can affect those trades
  • How each of the trades will fit to the overall portfolio

Are you kind of confused? Yes, this is indeed something that you should hear from the expert so that you will learn right from the start. You should learn about how they started and how they end up being an expert. At the same time, they will also give you some tips so that you will become better traders. You don’t need to be reliant to them all the time if you will listen to them intently.

Trading can indeed change your life for the better if you know how to do it. Of course you can expect losses as even experts experienced the same thing. However, your goal should be is how to have more wins than losses.

About the author – Kim Klaiman who is an expert in options trading says that the choice of strategy will matter a lot in trading.

Author: Calvin Brycen

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April 2018
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