You’ve already gotten the basics of options down. You understand that calls are bullish and puts are bearish. You get intrinsic value and time value. You comprehend options trading — this episode, however, delves into deeper, more complex options strategies.
Did you know you can use options in a conservative fashion? There are at least two ways: You can use them to generate income on your portfolio at little-to-no actual risk; and you can use options as a form of insurance against catastrophic losses. And of course, there are less conservative, more aggressive ways to use options to speculate for big gains, or to try to squeeze a dollar-ten out of a dollar. This episode will examine these more advanced options strategies.
In this episode, you’ll learn:
- About writing calls — both covered and naked!
- About the risks associated with writing naked puts — and the potential rewards!
- How to use collars to insure against losses and potentially eke out low-risk profits.
- A little bit about spreads — we take a look at a debit price spread, and talk a little about other kinds of spreads, including calendar spreads, which are another multi-option strategy.
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
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