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What are the basic option trading strategies?
Author: Ivan Yaller
Website: http://www.InvestingYes.com
Added: Tue, Oct 31, 2006 8:29:12
Category: Investing Questions
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Option trading has long been a successful business for most traders. Several rules and strategies have deveoped, starting from the standard policy called the "Rule of the Opposites," which is the idea that if one thing is not true then the opposite should be true.
In other words, if time decay in option trading is a drawback for selling an option, then it must have a positive effect when buying an option.
Four general strategies will strengthen your knowledge of option trading:
1. Long Call Strategy
2. Short Call Strategy
3. Long Put Strategy
4. Short Put Strategy
keywords: Investing | Investment | Invest | Stock Market | Funds | Financial | Trading About the Author:
Ivan Yaller answers frequently asked investing questions at PrettyGreatAnswers.com.
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