Interesting Option Trading Strategies ~ Free Stock tips , Nifty Options , Mutual Fund picks , SIP , Penny Stocks , Multi Baggers ,

Friday, July 31, 2009

Interesting Option Trading Strategies

  • Vertical Credit Spread: Where you profit from a stock staying above or below a specific price level,and also enjoy the benefits of the time decay of option premiums.
  • Butterfly: A limited risk strategy that gives you BIG profits when the stock ends at or near your price on expiry.
  • Iron Condor: Profit from the time decay of options and limit your exposure, with this neutral strategy.
  • Directional Trades: Buying Calls and Puts in fast moving stocks . When the stock moves quickly in the right direction, this high risk / high reward strategy pays off.
  • Straddle / Strangle: Profit from substantial and fast price movements in either direction.

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