Billy Williams
29 Option Spread Strategies You Need to Know (Part 1)
In a series of recent articles on stockinvestor.com, I explained some basics of option spread trading. If you are new to option spread trading, I suggest that you read these articles before moving on to specific details on individual option spread strategies. I will outline many different options spread strategies. The huge number of strategies […]
Is Options Spread Trading for You?
I have discussed the many advantages and a few disadvantages of options spread trading in a series of articles on . At this point, the reader might contemplate whether to get involved in options spread trading. The risks of an option being exercised, the additional commission expense or the additional complexity might not be worth […]
Use Option Spread Trading to Profit from Neutral Markets
I have explained several main advantages of option spread trading in a couple of previous articles. (here and here). Some of those advantages are the ability to control a large security or a contract with only a small amount of money and reduction of risk. Another option spread trading advantage is that traders are almost […]
2 Easy Option Spread Strategies for Minimizing Risk
Option spread strategies are simultaneous purchases and sales of the same class option on the same basic security but with different expiration dates or with a different strike price. Let us use the example of Class C share price of Alphabet, Inc. (NASDAQ: GOOGL) from an article to explain. The Alphabet, Inc. is trading stock […]
How to Minimize Option Trading Risk
One of the main advantages of options is the ability to minimize option trading risk. When I buy an option, I automatically limit my risk to the amount of money I paid for those options. However, when I sell an option, I expose myself to virtually unlimited risk. Some traders consider selling options too risky. […]
5 Additional Options Advantages
As we saw in the previous article, the main options advantage is that you can control a large security or a contract for a fraction of the share price. Before we get to the trading strategies and further options advantages, here is a brief review of basic terminology used in option trading Option type: a […]