Take a look at the option trading system offered at Options-Strategies (http://www.options-strategies.com). If trading option spreads is your forte, this site offers excellent option trading recommendations. Two to four trades are released every month.
Most trades invlove buying or selling option spreads. As many of you realize, spreads are the way to go. It's easy to understand why many experts agree, the best option strategy is trading spreads. First and foremost, option spreads mitigate risk. No investment is without risk, but spread trading offers a specific amount you may lose, and a specific amount you may gain. Another benefit of selling an option spread is time decay. As expiration nears, the spread will decay in value. This is a good thing. The investor who sold the spread wants it to decay in value, and eventually go to zero. If you sell something for $2.50 and it goes to zero, you are glad you sold it right?! Conversely, if you bought something for $2.50 and it went to zero, you would not be happy, obviously! This is where Options Strategies excels. They choose the right stock. They choose which direction that stock is expected to move in, and then they issue a trade alert on that stock, recommending a specific option spread.
Each trade alert issued has specific entry point prices. Trades are easy to get in, and easy to get out. Most trades expire at full profit, so closing the trade out is not usually nceccessary (The long & short options are both exercised, so Monday morning after expiration you simply see cash profit in your account). Options-Strategies.com charges a very reasonable monthly fee of $65/month. Their system for trading stock options is the best I've found online.
Wednesday, November 9, 2011
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