easy money selling options

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Easy Money Selling OptionsBy www.Options-Trading-Education.com The stock market is in pause mode. http://www.options-trading-education.com/24167/easy-money-selling-options/ You own several stocks that you want to keep long term.http://www.options-trading-education.com/24167/easy-money-selling-options/ Before We ContinueClick the links below to get yourFREE training materials.

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Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.http://www.candlestickforums.comhttp://www.options-trading-education.com/24167/easy-money-selling-options/ How can you make a little extra money with your portfolio?http://www.options-trading-education.com/24167/easy-money-selling-options/ It is possible to make easy money selling options when you already own the stock.http://www.options-trading-education.com/24167/easy-money-selling-options/ A covered option is one in which are selling a call or a put on a stock and you own it.http://www.options-trading-education.com/24167/easy-money-selling-options/ Along options strategycan result in easy money selling options.http://www.options-trading-education.com/24167/easy-money-selling-options/ This strategy involves selling calls or puts on stocks that you own.http://www.options-trading-education.com/24167/easy-money-selling-options/ What Is a Call?http://www.options-trading-education.com/24167/easy-money-selling-options/ A call contract gives the buyer the right to purchase a stock at a set price up until the expiration of the contract.http://www.options-trading-education.com/24167/easy-money-selling-options/ The selling is paid a premium for taking on the risk that the stock may go up substantially in price and that he will miss out on those gains.http://www.options-trading-education.com/24167/easy-money-selling-options/ If the seller is selling short he does not own the stock and then his risk is bigger.http://www.options-trading-education.com/24167/easy-money-selling-options/ The seller is obligated to sell if the buyer so chooses.http://www.options-trading-education.com/24167/easy-money-selling-options/ What Is a Put?http://www.options-trading-education.com/24167/easy-money-selling-options/ In a put contract the buyer purchases the right to sell a stock at a set price and the seller gets a premium for taking on the risk of a big drop in the price of the stock.http://www.options-trading-education.com/24167/easy-money-selling-options/ Someone who owns a stock will lose if the price falls substantially but is covered because he already has the stock to sell.http://www.options-trading-education.com/24167/easy-money-selling-options/ A person selling uncovered puts stands to lose as well and will need to buy at a price higher than the now-current market and lose when selling at the now-lower market price.http://www.options-trading-education.com/24167/easy-money-selling-options/ Familiarity with Your Stockshttp://www.options-trading-education.com/24167/easy-money-selling-options/ There are stocks that routinely rise and fall within a predictable channel.http://www.options-trading-education.com/24167/easy-money-selling-options/ You know this if you have held such a stock for year.http://www.options-trading-education.com/24167/easy-money-selling-options/ When the stock is close to its usual upper limit selling acovered call optionwill provide you with a little cash as the stock cycles back downward in its every repeating cycle.http://www.options-trading-education.com/24167/easy-money-selling-options/ The only risk that you have is if the stock suddenly and unpredictably goes way up in price.http://www.options-trading-education.com/24167/easy-money-selling-options/ The easy money selling options part of this scenario is that you know the stock and its characteristics and know that the likelihood of a big jump in price is slim.http://www.options-trading-education.com/24167/easy-money-selling-options/ This is a strategy that you can employ over and over again each time the stock cycles up and down within its predictable trading channel.http://www.options-trading-education.com/24167/easy-money-selling-options/ Another way to make easy money selling options iswriting puts.http://www.options-trading-education.com/24167/easy-money-selling-options/ Writing is just another word for selling.http://www.options-trading-education.com/24167/easy-money-selling-options/ In this case the stock that you own is nearing its usual lower limit before cycling back up.http://www.options-trading-education.com/24167/easy-money-selling-options/ You sell puts on the stock and get paid a nice chunk of change on top of the appreciation of your portfolio as the stock predictably rises again.http://www.options-trading-education.com/24167/easy-money-selling-options/ Fundamentals and Market Sentimenthttp://www.options-trading-education.com/24167/easy-money-selling-options/ Those who routinely make easy money selling options typically take a conservative approach.http://www.options-trading-education.com/24167/easy-money-selling-options/ They only sell calls or puts when market and stock fundamentals are on their side.http://www.options-trading-education.com/24167/easy-money-selling-options/ And they keep an eye on the market for changes in sentiment based on fear or greed as these factors may temporarily drive stock prices beyond what fundamentals dictate.http://www.options-trading-education.com/24167/easy-money-selling-options/ Smart options traders stay out of trades that they do not understand and only take the trades that clearly will lead to easy money selling options.http://www.options-trading-education.com/24167/easy-money-selling-options/