My patience paid off. The stock bolted higher, and I ended up selling this option last week at My successful options trading strategy worked beautifully. First, I look at the chart. This happened last week on a Celgene trade. I bought the Nov calls at 4. After falling through the bollinger bands and closing near lows, it was time to cut and leave. You can see this move on the chart below.
No, I did not bank a big win.
But I still consider this a great example of my successful options trading strategy. I was able to cut my losses and get out before things got worse. I hear from many traders who tight with their stops. Email me for more information — bob explosiveoptions dot net. Skip to content. Two examples of this successful options trading strategy Recently, I had a play on Netflix. Tags: celg confidence nflx options trading strategies patience. Related Posts.
You can learn more about him on the About Page , or on his personal site RobertFarrington. He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future. He is also a regular contributor to Forbes.
Options Trading Strategies: A Guide for Beginners
Other Options. Get Out Of Debt. How To Start. Extra Income. Build Wealth. Credit Tools. Table of Contents Defining Options, First. Why You Should Use Options.
Defining Options, First. What is Options Trading? Then, you buy or sell your options to increase your profits or lower your risk of loss.
Basics Of Options Trading Explained
Call option - If you have a call option, you have the right to buy shares at the strike price before the expiration date. Having a call option obligates the current owner of those shares to sell them to you according to the option agreement. Put option - Having a put option means you have the right to sell shares at the strike price by the expiration date. Buying and Selling Options.
You pay a premium when buying or selling an options contract. Exercising Options. Options generally require less of a financial commitment than if you bought the asset outright.
- How to Trade Options in 4 Steps;
- the fully automated trade-execution system installed on the nyse is called;
- tax on income from options trading!
- What is options trading?.
- tax options trading.
How to Start Trading Options. Here are three strategies a beginner can use to get started. The Long Call When you hold call options expecting the price to rise, the value of the shares can increase beyond the pre-negotiated strike price.
- Options selling strategies by successful Options Seller?
- Basics Of Options Trading Explained.
- trading system performance metrics!
- Best Options Strategies to Know.
- combo options trade.
The Long Put If you predict the rate will fall, buying put options can limit your investment loss. The Short Put The opposite of the long put, the short put is useful if you believe the price will stay the same or rise through the expiration. This way, the option becomes worthless, and the put seller gets to keep the whole premium. As with all investments, there is an inherent risk in options trading.
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Defining Options, First
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