Option Strategy Review

Today I would like t provide a handy strategy review. Helping to translate your market vision into a hedged option strategy. Note that I say hedged. I do not believe in buying or selling stocks and futures naked, ie with no protection. The same goes with buying options outright. Always spread, is my motto.

Mega Bullish? Buy stock with puts. Just plain Bullish? Buy vertical call spread, sell vertical put spread.

Bullish at lower level with an eye to dividend yield or short term cash generation? Sell cash covered put. Bullish on current dividend yield? Buy stock with Collar.

Particular price target? Do Butterfly with short strike at target.

Neutral to range bound?  Condor, Iron Condor, Iron Butterfly.

First down, then up? Buy call calender spread. First up then down? Buy put calender spread.

Mega Bearish? Sell stock or deep ITM call short with long protective call above it. Just plain  Bearish? Buy vertical put spread, sell vertical call spread.

If any of these strategies are unfamiliar or strange to you, please fell free to contact me at any time. Click the Contact heading above.

Finally, do note that with the possible exception of the short cash covered put, all these strategies are hedged with a well defined maximum loss. I hope this review has been helpful and Happy Trading!

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Options Markets Trading Ideas

Originally posted here...

  Around the Web, We're Loving... Petition urges Wal-Mart, McDonald's to pay more Obama's Syria Waffle Huge Blow to US Credibility in Mideast Microsoft Buys Nokia Phone Unit for $7.2B - And CEO? What Should You Know About AMZN? Most Popular The Apple Stories You Missed Wednesday (AAPL) These Two Stocks Are Moving Closer to Death By The Day Bill Gates Admits Well-Known Windows Trick Was a Mistake REVIEW: Nexus 7 (2013 Edition) And Chromecast (GOOG) Is Carl Icahn Secretly Net Short Apple? (AAPL) PlayStation 4 Software Pre-Orders Top Xbox One By 55% (SNE, MSFT) Related Articles () Add Some Dang Downside Protection. Collect $50. Achillion Pharma Announces Unable to Resolve Clinical Hold Market Wrap For Friday, September 27: Dow Ends The Week Negative For First Time In Month Fed Fueled Friday – CASH Proves King as we Make $2,500 in 61 Minutes! Option Strategy Review Benzinga Weekly Preview: Italian Senate To Decide Berlusconi's Fate View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
Traders & Investors Summit