Make big money trading options expiration

Options big money trading expiration make

The prevailing wisdom is that the way to make big money in options is to sell covered calls against high-priced stocks. Not only does this make big money trading options expiration save on momey, but it can give you flexibility when dealing with the underlying stock.Bank of America (NYSE: BAC) is a great example. Its expitation day trading but its not buy and hold either, its the holding period that every Billionaire Hedge Fund Manager uses.Secondly, deep in the money call options, are a great way to trade stocks because they give you super leverage up to 20 times for little or no cost, yet with less risk than trading options outright.

However, stock options are priced based on two overall components. The first component is the intrinsic value of the stock option. The intrinsic value is mak as the difference between the market price and the strike price of the option. In this series, veteran options trader and author mojey OptionSmith, Steve Smith will demystify a range of topics from options pricing to trading strategies to special situations like earnings reports and takeovers.1.

Swinging for the Fences Ahead of EarningsWhen people talk about trading options, the conversation usually turns to ultra-risky strategies. By far, the most common of these is buying call or put options ahead of an earnings number in the hopes of hitting a home run. Wall Street is run by really smart marketers and over the last decade the options market has exploded.

Their loss is our opportunity. Traders willing expirstion use their Options Hunter training to watch.

Make big money trading options expiration

Make big money trading options expiration

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