Thursday, November 16th, 2017

Does anyone know a safe Option Trading Strategy that makes Money?

? Anyone have experience with a strategy of extraordinary choice may recommend advanced and also make money? N is safe to use i. e. protection strategies using? n instead of naked puts or calls?

Comments

6 Responses to “Does anyone know a safe Option Trading Strategy that makes Money?”
  1. InspectorBudget says:

    As you should be aware by now, there is no strategy that can guarantee that you make money.

    Most of the option strategies that you can learn about will provide protection ( upside or downside ), but in doing so will limit your gains/losses.

    Go and Google for yourself these strategies – Iron Condor, Iron Eagle, Straddles, Strangles, Risk Collars, Bull Put Spreads, etc.

    This subject is too wide and broad to be answered in this forum.

  2. BIll Q says:

    The truth of the matter is that options trading is highly risky, and there are no safe strategies. If there were, we’d all be rich.

  3. ? ~Sigy the Arctic Kitty~? says:

    No and neither does anyone else who will reply to you.

    Think about it. Anyone who knows a low risk strategy with high returns is not going to share it with anyone, especially total strangers online. Why in the world would they? High returns with low risk are the Holy Grail of trading, investing, and business in general.

    What do you think hedge funds and market makers and trading desks at merchant banks devote their waking hours to? It’s a competitive market and a competitive world and anyone smart enough or lucky enough to discover or develop an edge in the market is smart enough to keep quiet about it. When more people go into a strategy or approach, the competition diminishes the returns available.

    And for sure the same goes for anyone offering to sell you a strategy or system. By definition, anyone who knows a way of making money with low risk or effort can get their hands on a lot more than you or I have to give them.

    To further answer your question, yes there are strategies for options that don’t lose everything. They are associated with spreads/straddles and hedging positions. But there is no free lunch. Strategies that limit your potential loss also limit your potential gain. And when you take leverage and transactions costs into account, they may or may not be worth while to pursue.

  4. Chuck E says:

    One strategy that you might want to look into is covered calls. I’ve been using successfully for the past year and was surprised that the inspector didn’t mention it in his list. (Too basic a technique perhaps?)

    I’d like to reiterate what he mentioned about protection however because it certainly applies here; your principal will always be at risk. You can use options to limit that risk however (as well as your gains in some cases as Sigy points out) and also to generate a return from an otherwise stagnant price, but you always face the prospect of losing if what you hold goes down fast.

    One last note to Sigy; although I agree that a lot (maybe most) of those who sell trading advice and strategies do so not because that advice is really good but rather because there’s good money to be made selling any kind of advice, you can’t paint all advisers with that brush. A friend of mine purchased the Compound Stock Earnings course and invited me to participate, debate and try out what was presented to us. It was a difficult philosophy to accept at first (it really flies in the face of my buy something good and let it grow beliefs for example,) but I have to say that we’ve been very happy with the results and it’s completely changed how we trade. It was well worth the cost of the course. It’s interesting to note however that a lot of others who took the same course thought of it as a complete rip off because they just couldn’t get the hang of it (I suppose.)

  5. YouAsked4it says:

    There are some advanced option strategies that have a very good probability of success, but no one can guarantee against unforeseen events such as a sudden stock market collapse. Fortunately, these don’t happen every day.

    But you can greatly reduce your risk by doing two things:

    1. Trade index related funds (ETFs) instead of individual stocks – these eliminate the unexpected volatile price movements that can come from news releases or earnings reports.

    2. Use strategies that put option time decay on your side and learn how to adjust your positions so that you remain in the profit zone until close to expiry date.

    The Options Trading Pro System takes this approach and runs with the motto “Trade With Confidence”. Could be the answer you’re looking for.

    There is another strategy you can use, called “options arbitrage”. If you set it up right, it is an entirely risk free trade – but the returns on investment are also usually very low. The general rule seems to be … the higher the risk the higher the potential reward – and vice versa.

  6. Greg says:

    I’m thinking about purchasing the Optionsxpress 1 on 1 coaching program. Looking for feedback (pro and con).

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