Common Option Trading Strategies
a) Basic Strategies
1. Long Call
Used when a trader expects strong upside movement. Risk is limited to the premium paid, while reward potential is theoretically unlimited.
2. Long Put
Used when expecting a sharp decline. Risk is limited to the premium, and profits increase as the underlying falls.
3. Covered Call
Involves holding the underlying stock and selling a call option. It generates regular income but caps upside potential.
4. Protective Put
Buying a put option against an existing long position. This acts as insurance, limiting downside risk.
a) Basic Strategies
1. Long Call
Used when a trader expects strong upside movement. Risk is limited to the premium paid, while reward potential is theoretically unlimited.
2. Long Put
Used when expecting a sharp decline. Risk is limited to the premium, and profits increase as the underlying falls.
3. Covered Call
Involves holding the underlying stock and selling a call option. It generates regular income but caps upside potential.
4. Protective Put
Buying a put option against an existing long position. This acts as insurance, limiting downside risk.
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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.