The Simple Options Strategy That Always Beats The Market

Options strategies are a great way to make money, but it's important to find a strategy that fits your time frame and resources. If you're looking for a strategy that is simple and effective, the simple options strategy is a great option. The simple options strategy is a trading strategy that involves buying a call option and a put option on the same stock. The idea behind the strategy is that the stock price will either go up or down, and you will make a profit either way.

How to Trade the Simple Options Strategy

The first step in trading the simple options strategy is to choose a stock. Any stock will work, but you'll want to choose a stock that is actively traded and has a high implied volatility, which indicates a higher expectation of price movement.

In The Money: The Simple Options Strategy That Always Beats the Market

by Heather Cullen

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Once you have chosen a stock, you need to determine the strike prices for the call and put options. The strike price is the price at which you can buy or sell the stock. You'll want to choose a strike price that is slightly above the current stock price for the call option and slightly below the current stock price for the put option.

The next step is to determine the expiration date for the options. The expiration date is the date on which the options contract expires. You'll want to choose an expiration date that is far enough out to give the stock time to move, but not so far out that the options premium decays too much.

Once you have determined the strike prices and the expiration date, you can purchase the call and put options. You'll want to buy the call option at the strike price that is slightly above the current stock price and the put option at the strike price that is slightly below the current stock price.

How to Make Money with the Simple Options Strategy

The simple options strategy can make money in two ways. First, you can make money if the stock price goes up. If the stock price goes up, the call option will increase in value and you will make a profit. Second, you can make money if the stock price goes down. If the stock price goes down, the put option will increase in value and you will make a profit.

The amount of money you can make with the simple options strategy depends on the volatility of the stock price. The more volatile the stock price, the more money you can make. However, it's important to remember that the more volatile the stock price, the more risk you are taking.

Example of the Simple Options Strategy

Let's say that you buy a call option and a put option on Apple stock. The call option has a strike price of $105 and the put option has a strike price of $100. The expiration date for both options is one month away.

If the stock price goes up to $110, you will make a profit on the call option. The call option will be worth $5, which is the difference between the strike price and the stock price.

If the stock price goes down to $95, you will make a profit on the put option. The put option will be worth $5, which is the difference between the strike price and the stock price.

The simple options strategy is a simple and effective way to make money. The strategy is easy to understand and can be used by anyone, regardless of their experience level. If you're looking for a strategy that can help you beat the market, the simple options strategy is a great option.

Disclaimer

The information contained in this article is for educational purposes only and should not be construed as financial advice. Trading options involves risk and you should always consult with a financial professional before making any investment decisions.

In The Money: The Simple Options Strategy That Always Beats the Market

by Heather Cullen

4.5 out of 5

Language	:	English
File size	:	9835 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
X-Ray	:	Enabled
Word Wise	:	Enabled
Print length	:	321 pages
Lending	:	Enabled

FREE