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Option Strategies

Better Trades Options Strategies

With an emphasis on options trading, BetterTrades students learn how to approach the stock market regardless of which way it happens to be trending. If the market is bullish, there are specific strategies that will generate money. If the market is bearish, there are certain types of trades that will be profitable. Even if the market is going sideways, there are specific trades that bring in some cash. It's all about being educated and making better trades.

Bullish strategies work the best when investors believe the price of a stock is going to rise. They include: buying call options; implementing a debit spread like the bull call spread; using a credit spread like the bull put spread; selling puts; and writing covered calls. The simplest strategy is buying a call, which reflects the rise and fall of the underlying stock. The other strategies require multiple positions.

Bearish strategies work best when investors believe the price of a stock is going to fall. They include: buying puts; using a debit spread like the bear put spread; using a credit spread like the bear call spread; and the risky notion of selling a naked call. The simplest strategy is buying a put, which reflects the rise and fall of the underlying stock. Like the other bullish strategies, the others require multiple positions.

Neutral strategies are used when an investor is undecided about whether a stock is going to go up or down in price. These strategies don't have an upside or downside bias. One of the most popular neutral trades taught by BetterTrades is the Chicken Trade, a strangle trade that takes advantage of short-term volatility that often accompanies an earnings announcement. Other neutral strategies include long and short straddles, long and short strangles, butterflies and the Iron Condor.

BetterTrades teaches the safe strategies to its students. By following the rules under each strategy, a student can make better trades and be safer in the market.