The Best Options Strategies For Beginners

Are you new to the world of trading options? As a beginner, it's important to understand the different strategies available to you. Options trading can be a highly lucrative endeavor, but it's not without its risks. By utilizing the right strategies, you can maximize your potential for profits while minimizing the chances of losses.

In this article, we will explore the best options strategies for beginners, allowing you to make informed decisions and develop a solid foundation in options trading. Let's dive right in!

1. Covered Call Strategy

The covered call strategy is often regarded as one of the most straightforward options trading strategies for beginners. This strategy involves selling a call option on a stock that you already own. By doing so, you collect a premium, which provides you with immediate income.

The 3 Best Options Strategies For Beginners: The Ultimate Guide To Making Extra Income On The Side By Trading Covered Calls, Credit Spreads & Iron Condors

by Freeman Publications (Kindle Edition)

4.4 out of 5

Language	:	English
File size	:	9406 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
X-Ray	:	Enabled
Word Wise	:	Enabled
Print length	:	509 pages
Lending	:	Enabled

FREE

The covered call strategy is low-risk as the downside is limited to the stock's decrease in value. This makes it an attractive strategy for conservative investors looking for consistent returns. However, it's essential to choose stocks that you believe will remain stable or rise slightly in value since the potential for capital gains is limited.

2. Long Call Strategy

The long call strategy is another popular options strategy for beginners. This strategy involves buying call options on a particular stock or index. It allows you to benefit from the stock's price appreciation without actually owning the stock.

The long call strategy provides a higher potential for returns since you can amplify your gains if the stock price rises significantly. However, it's crucial to note that this strategy also carries higher risks. If the stock price doesn't rise as anticipated, you could end up losing the entire premium paid for the call options.

3. Bull Put Spread Strategy

The bull put spread strategy is a relatively conservative options strategy suitable for beginners. This strategy involves selling a put option while simultaneously buying a put option with a lower strike price. By doing so, you create a spread and receive a premium upfront.

The bull put spread strategy allows you to profit if the stock price remains above the lower strike price. It's an ideal strategy when you're moderately bullish on a stock's overall performance. However, it's essential to be prepared to buy the underlying stock at the lower strike price if assigned.

4. Bear Call Spread Strategy

The bear call spread strategy is a useful strategy for beginners who have a neutral or slightly bearish outlook on a stock or index. This strategy involves selling a call option while simultaneously buying a call option with a higher strike price.

The bear call spread strategy allows you to profit if the stock price remains below the higher strike price. It's an excellent strategy for generating income while limiting the potential losses. However, it's essential to be prepared to sell the underlying stock at the higher strike price if assigned.

5. Protective Put Strategy

The protective put strategy is a defensive strategy that beginners can employ to protect their stock portfolios. This strategy involves buying put options on the stocks you own to hedge against potential losses.

The protective put strategy allows you to limit your losses in case the stock price drops significantly. The option acts as insurance, ensuring that you can sell your stock at a predetermined price for a set period. However, it's important to consider the cost of purchasing put options as it can eat into your potential profits if the stock price remains steady or rises.

Options trading can be an exciting and profitable venture for beginners. By employing the right strategies, you can effectively manage your risks and optimize your returns. The covered call strategy, long call strategy, bull put spread strategy, bear call spread strategy, and protective put strategy are excellent starting points for beginners.

Remember to thoroughly research each strategy, understand their associated risks, and practice using them in paper trading or demo accounts before implementing them with real money. This will help you gain confidence and refine your skills as an options trader.

So, dive into the world of options trading, and make your investments work harder for you!

The 3 Best Options Strategies For Beginners: The Ultimate Guide To Making Extra Income On The Side By Trading Covered Calls, Credit Spreads & Iron Condors

by Freeman Publications (Kindle Edition)

4.4 out of 5

Language	:	English
File size	:	9406 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
X-Ray	:	Enabled
Word Wise	:	Enabled
Print length	:	509 pages
Lending	:	Enabled

FREE

Stop settling for non-existent savings account rates and bank CDs which pay less than 1%... and start making your investments work for you again…

If you’re worried about the current market uncertainty, these 3 options strategies are your antidote to chaos.

You can use them to generate consistent returns, no matter what happens to your stock.

Making it the perfect income strategy, because you can use covered calls, credit spreads & iron condors to create instant cash, with premiums paid directly into your brokerage account.

Even if you know nothing about options, this book will get you right up to speed.

Here is just a fraction of what you’ll discover:

·       The 6 criteria we use to select the best stocks to write covered calls on

·       The vital difference between covered and uncovered calls

·       Options Greeks explained in 10 minutes

·       3 rules for adjusting your covered call

·       How to use covered calls to lower the purchase price of stocks you already own

·       The 8 criteria we use to select the best stocks to write credit spreads

·       The only 3 technical indicators you need to know for credit spreads. Ignore everything else, you only need these 3 beginner friendly metrics to get started

·       10 effective ways to master the mental side of trading

·       The 5 best low-commission brokers for beginner options traders

·       Trade options like Warren Buffett? The world’s greatest investor has used this specific strategy to make $4.9 Billion over the past decade

·       3 “non-negotiable” trading rules. Adhere to these and you will be ahead of 90% of amateur traders

·       Exactly what level the VIX should be at before you sell a spread. A backtest implementing this one tweak made the strategy 50% more profitable over 10 years worth of trades

…and much, much more!

Plus, inside the book you get free access to a 9 part video course covering every aspect of profitable investing

So even if you’ve never used options before, the book walks you through everything step by step. You’ll find everything explained in plain English, free from technical jargon.

Even if you get stuck, you can always send us an email (provided inside the book) or reach out in our private investing community on social media – we’re always happy to help with any questions you might have.

And remember... bank CD's will only pay you between 0% and 1%... the dividend yield on the S&P 500 is around 2%... and 5 to 10 year municipal bonds will only pay between 2% and 3%.

But if you use what’s inside this book, you could have the opportunity to earn so much more than that.

And when you receive just a single premium from one of these trades (which is paid into your account instantly) it will cover the cost of this book 10x over.

To get your copy right now, just scroll up and click “add to cart”