Always keep a check on the right Options Strategy

Too easily and frequently, investors start playing this game without even understanding its true meaning and philosophy. In true words, it is more of a strategic game. This comes under its risk management which holds various Options Strategy to guide you in bad time and ensures 100% success.

Let’s explore Options basic concept one more time for clear interpretation. An options trading is wide and practiced around the globe with a clear goal of making money and profits. It is totally a game of agreement known by "calls" and "put". Calls say that an investor is able to purchase share at defined rate and time period. Put is in which a person possess full right to sell it at fixed amount and at fixed date.

One must be aware of strategies so that these can act as road maps and provides a right route to your trade. No matter whether you are a beginner or an experienced one, you must keep these by heart to teach you.

Do it always in a strategic way!

An explanatory discussion has been done below about common available strategies of this field.

1. Covered call: Under this, when a stock scattered in the market then, covered call is mentioned over it has impacts.

• If you sell such call then, you have to do it at Strike price if option has been assigned.
• This is also used to make fortunes from the market after the stock goes up.
• Buying and selling when is done simultaneously at the precise moment, it is denoted as "Buy/Write." This is used to bring down the price of stock that has just been bought by investor.

1. Married Put: This strategy says that whenever a person is buying shares then, he has to opt for put option for equivalent shares in the market. This is done just to shield itself from great losses in case encountered; acts like insurance policy for your shares.
2. Bull call Spread: An investor is supposed to buy call options at pre-determined price. He has complete right to sell the same at higher fixed prices; other factors like time period will remain the same. This approach is used to increase the value of shares in the market.
3. Bear Put Strategy: This is a vertical strategy which is opposite of Bull Call Spread as in this, purchased strike priced shares are sold at lower prices that are already fixed. In this strategy, an investor faces restricted amount of gain as well as the loss percentage.

Always play safe and gain more!

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