Thursday, November 16th, 2017

what is the best strategy for trading options, calls or put.?

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    4 Responses to “what is the best strategy for trading options, calls or put.?”
    1. sds029 says:

      ONE MUST GO THROUGH THE MARKET PROPERLY AND THEN DECIDE TO
      HOLD /TRADE STOCKS ACCORDINGLY.

    2. arun prasad k says:

      Both calls and puts are can be used strategically to get good profits. However selling calls/puts is quite risky as the losses can be huge. One will be better off buying options.
      Simple strategies:
      Strategy 1: long call/ put – limited risk
      If you are bullish buy calls, otherwise buy puts.
      Strategy2:short call/put – very risky

      Combination strategy:
      1. bull call/put spread
      2. bear call/put spread
      3. Covered call/put.
      4. Straddle.
      5. butterly spread.
      the list will be endless. One can end up getting lot of put-call combinations.

    3. ilovela says:

      Your strategy depends on your forecast of the direction and volatility of the market.

    4. brunt says:

      Buy a call if you think the underlying stock price is going to increase, buy a put if you think that it is going to fall.

      Sell a call if you own a stock, and the strike price is at or higher than a price at which you would sell anyway. If the stock doesn’t go up, you get to keep the proceeds of the sale of the call. If the stock goes up, your stock will likely automatically be sold at the price you want, and you still get to keep the proceeds of the sale of the call.

      Sell a put if there exists a stock that you would love to buy at the strike price of the put. If the price of the option doesn’t go down, you don’t get to buy, but you still get to keep the proceeds of the sale of the puts. If it does go down, the puts will be exercised, and you will be able to buy the shares at the strike price, and you will still get to keep the proceeds of the sale of the puts.

      It all depends on what you want to do – they all have their places.

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