10 Options Strategies Every Investor Should Know
Traders often jump into trading options with little understanding of the options strategies that are available to them. There are many options strategies that both limit risk and maximize return. With a little effort, you can learn how to take advantage of the flexibility and power that stock options can provide. Here are 10 options strategies that every investor should know.
Key Takeaways
- Options trading might sound complex, but there are basic strategies that most investors can use to improve returns, bet on the market’s movement, or hedge existing positions.
- Covered calls, collars, and married puts are used when you already have an existing position in the underlying shares.
- Spreads involve buying one (or more) options and…