What are the best strategies for selling options?
Sales or writing, storing options, usually performing professional and highly qualified traders. Strategies used for selling options to market market are considered aggressive. They can be used to collect premiums or to obtain shares with a discount to the current market value. The PUT is obliged to buy specific shares for a selected strike price for expiration or earlier. The buyer has rights and the maximum loss is a bonus paid for this option. The seller has duties and the maximum loss is virtually unlimited. Writing trade can be acceptable on closer control of real risk and reward options. Recent studies will indicate a very large percentage of possibilities will expire worthless. This is bad news for option buyers and great news for sellers.
If the expiration of the purchased options have expired, the bonus was sold to the seller. This would indicate that sellers ofPMCi are profitable more often than buyers of options. The investor must be informed and educated before the introduction of these unlimited risks. There are online sources to explain risks and rewards of standardized options. Entering this market without deep knowledge of PUT options can be a very risky effort.
Successful trade is a function of the investment goal. The aim of the sale of PUT can be to collect the bonus paid to the buyer. Another goal may be to purchase shares with a discount for current market value. An informed trader can choose both goals, resulting in a wpokažžžžda trade shift. The result of the sale of a properly placed option store will either collect bonuses or buy shares with a discount for current market value. This is the best strategy for selling options because it can be considered a winning store regardless of the result.
This type of trade is very easy to implement, but the trader must be able to evaluate shares on the basis of basic and technical analysis.The appropriate time to enter this store is where shares and market are generally in the area of great support or near the technical analysis. Entering this store without the use of technical analysis is nothing but gambling.
The most important requirement of this strategy is the willingness and ability to buy traded stocks. If the investor is not interested in ownership of shares on stocks, this is not a good strategy. By selling PUT, the trader can benefit from taking the ownership of the shares of him already is interested in buying with a discount for the current market value. If this scenario does not work, the PUT will receive the premium paid to the buyer.
The greatest risk of using this strategy is ownership of shares. The company could declare bankruptcy, resulting in a total loss for the trader. Shares can reduce the value of the trader to hold the shares for a long time or sell shares for loss. Both of these scenarios could also occur if the trader bought shares directly,Without capturing a discount available by selling options.