I have written 2 blog posts, sharing with you on how options work. Click the link below to read them again.
1) http://helmihakim.com/investment/m9a-insurance-regulatory-exam-blog-post-no-1/
2) http://helmihakim.com/investment/m9a-insurance-regulatory-exam-blog-post-no-2/
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Now, you have a clearer understanding on how option works. In this blog post, I am going to share with you today on 4 most commonly use, option strategies. They are….
1) Covered Call Strategy
2) Protective Put Strategy
3) Bull Straddle (also known as Long Straddle) Strategy
4) Bear Straddle (also known as Short Stradel) Strategy
I have created the diagram below while studying for my finance degree, to sum up and make it as easy as possible to comprehend. ( You can click on the image to view the full image)
1) Covered Call Strategy
You own the stock and you sell call option.
2) Protective Put Strategy
You own the stock and you buy put option.
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