Subscribe to Money Morning get daily headlines subscribe now! Money Morning Private Briefing today's private briefing Access Your Profit Alerts
Your Advisors

Michael C. Thomsett- Money Morning - Only the News You Can Profit From.


  • Options Trading Strategies: What You Need to Know About LEAPS, Spreads and Straddles

    There are hundreds of option strategies. And they can be vastly different in terms of tactics and desired outcomes.

    But in fact, there are really only a few basic strategies, and everything else is built on these in some form. This range of possible strategic designs is what makes the options market so interesting, challenging, profitable… and also nice and risky.

    Are you surprised by my characterization of risk as "nice?"

    Well, "risk" and "opportunity" are really the same thing, and every option trader needs to accept this.

    Because if you want to go fast and get some serious movement, well, you have to climb on board the rollercoaster first, even if it scares you a little bit.

    In my last options trading strategies article I took the mystery out of long calls, long puts, covered calls, short puts and insurance puts.

    But the truth is those are only five of the eight general strategies (and "families" of strategies) we use here At Money Map Press.

    Today I'd like to tell you about the final three, explaining what you need to know about LEAPS, spreads, straddles.

    Let's get started with LEAPS.

    Understanding LEAPS Options

    This strategy can be an attractive alternative to the otherwise very short lifespan of most options. And the potential for gains in either long or short LEAPS trades is substantial.

    To continue reading, please click here...
  • Options Trading Strategies: Everything You Need to Know About Put and Calls
  • Options Trading: How to Read an Options Listing
Click here to read more stories