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Advanced Options Strategies Guide |
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Before continuing, we need to emphasize
that options represent a higher-level form of
investment, and carry a much higher amount of
risk. As such, investors are advised to thoroughly
understand and learn how to trade options before investing,
and to only invest with risk capital. |
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Stock options
are more complex and risky than
stocks. Carefully study and learn how to trade options
before applying these advanced options strategies. Also, only invest
with money that you can afford to lose. |
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| This guide assumes that you already have a
basic understanding of the fundamentals of option trading, such as buying and selling calls and puts. If you wish to read up on the foundations of option trading, do check out our Option Basics Guide. In essence, every option strategy - no matter how complicated they are - comes down to a combination of buying and selling call and put options at various strike prices and exipration dates. Different combinations of these basic building blocks of option trading are used to suit the investor's risk profile and market outlook. Are you bullish, neutral or bearish on a particular stock? Are you prepared to risk more or prefer a more conservative strategy? Do you prefer to monitor your trades daily or buy a position and wait till expiration? Whatever your preferences are, there's an option strategy for you. This guide will cover some of the more advanced options strategies such as butterflies and iron condors. The topics covered in the Advanced Options Strategies Guide are as follows. You can click a title to jump directly to that topic, or click the "Next" button below to start with the first topic. |
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