Option trading strategies: A guide for beginners

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All customers can follow the signals from these signal providers free of charge. Binary Options Binary Options are referred to as the simplest trading product in the financial sector. Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Mike also claims that anyone who signs up to use the software will get access to his exclusive private signals group on Facebook.

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IQ Option is one of the fastest growing online trading brands in the world! Voted the best mobile trading platform, we have now expanded our offerings to include stock trading, ETF trading, Forex trading and a brand-new product unique to IQ called Digital Options.

Blog posts are informative and are great for intermediate traders or beginners looking to expand on their current knowledge base. While technically not a pure options trading blog, VIX and More is the number one resource on all things volatility. Any option trader worth his salt needs to have a solid understanding of volatility. Allan is very popular with risk averse investors who are looking at options as a way to generate a steady, low risk income. No crazy high-flying trades here, just solid advice for long term investors.

Rachel from Sassy options provides excellent market commentary and trading ideas, definitely worth a read each week. Feel free to let me know in the comments section if you think I missed anyone.

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You can unsubscribe at any time. Our unique strategy offers alerts and trade ideas four times per month, specializing in weekly options. The primary objective is positive returns on a consistent basis. Short-term investment ideas targeting double-digit results, best in the industry for weekly options. A great majority of our newsletter trade ideas are indeed profitable.

Weekly options are not easy to trade, but our proprietary spread strategy has been proven to work on a consistent basis. However, please understand there will be losses. However, at the end of the day, at the end of the month, our portfolios will prevail with bottom line results far greater than other slow-paced strategies.

A majority of the special trade ideas here are option spreads, buying and selling credit spread and debit spreads. The goal is to maintain consistent ideas while keeping risk to a minimum.

Market conditions, stock valuations, option volatility, and upcoming events are just some of the focal points of the weekly research. Expert analysis has led to excellent trading results. Both bullish and bearish option positions may be taken. As opposed to the world of the equity trader where price is the only variable, the value of options respond to the mutual interaction of the primal forces that drive option pricing.

The primal forces in no particular order are time to expiration, implied volatility, and price of the underlying. The interplay of these forces defines the yin and yang of options trading. Using multiple trade constructions allows the trader the flexibility to produce returns in a variety of trading environments. Options trades can be taken with a directional bias or a focus on time decay as the primary profit engine.

A combination of long butterfly spreads, various credit spreads, and a variety of debit spreads are used in combination to produce a constant positive theta portfolio position.

Essentially the portfolio is designed to collect daily time decay with a focus on underlying equities or indexes that have implied volatility levels that are above historical averages. Different spreads are used based on the desired outcome and volatility considerations. Through the use of multiple spread types and different expiration, dates members are capable of producing dynamic hedges against unexpected price movements. The adjustability and broad range of trade structures allow members to profit whether we are confronting a low-volatility market, sideways or consolidating conditions, or a high-volatility marketplace.

Using an inevitability such as the passage of time as a primary profit engine dramatically reduces overall capital risk. In addition, the proper utilization of time decay based trades can dramatically reduce risk while maximizing trade efficiency.

Unlocking the passage of time to produce profits radically improves the probability of success over the longer term. If you are not capitalizing on time decay in your option trading, you are leaving money on the table! I find your daily commentaries extremely helpful in the decision-making process, and I am gradually getting accustomed to your timing. It is also a sort of mentoring process, which I think is certainly a good idea in my case. I am looking forward to covering the full scope of option strategies, as they present themselves in the market and I am looking forward to a fruitful and profitable relationship, and many more successful trades to come.