Here are three option strategies that new option traders should avoid and why. 3 option strategies that are too risky for new ...

the trader will be required to buy at a higher than market price. Example of a Cash-Secured Put Strategy In this example, a trader sells a one-month put option on Company XYZ with a $45 strike ...

This isn't like the usual market order of buying or selling a security, where the investor is obligated to do so. This nuance is part of the strategy around trading options; sometimes, it's in the ...

If you buy one call contract, you are essentially long 100 shares of that stock. As such, purchased call options are a bullish strategy. To understand how buying call options might play out ...

However, experienced traders can also go on to consider more complex strategies that involve buying or selling combinations of options. It is important to have a strong grasp of options trading ...

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The third strategy is straightforward. You buy 100 shares of MicroStrategy at the current price of $352.67. You then sell a put option well out of the money for income or the potential to buy ...

In a long combo trading strategy, essentially, a trader would sell an out-of-the-money OTM put option and buy an out-of-the-money (OTM) call option. Executing this strategy entails a fairly lower ...

A long call is the most straightforward call-trading strategy. If an investor is bullish on a stock (i.e., they think it will go up in value), they can buy a call option on it. If they choose an ...