Best 3 Step Option Trading Strategies for Beginners

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samiyajailani

Age: 2023
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Option trading is how investors can speculate on the future direction of the overall stock market or individual
securities, like stocks or bonds. Option contracts give you the
choice—but not the obligation—to buy or sell an underlying asset at a
specified price by a specified date.

Option is among the most popular vehicles for traders, because their price can move fast, making
(or losing) a lot of money quickly. Option trading strategies can range
from quite simple to very complex, with a variety of payoffs and
sometimes odd names. (Iron condor, anyone?)

Regardless of their complexity, all option strategies are based on the two basic types of
option: the call and the put. Below are 3 popular strategies, a
breakdown of their reward and risk and when a trader might leverage them
for their next investment. While these strategies are fairly
straightforward, they can make a trader a lot of money — but they aren’t
risk-free.

Check out this article: Option Trading For Beginners - Best 3 Step Strategy.

Posted 17 Mar 2023

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