In some situations, options trading is one of the best places to get started in investing. You do not have to have a lot of money to achieve this type of success, either. Rather, you need a few good strategies (and perhaps the help of working with an experienced options advisory service). What simple strategies can help you to get started?
Consider the Long Call
Buying calls, or the long call as it is called, is perhaps one of the best strategies for those who are confident on particular stocks or other investments that carry limited risk. You may also find this option to be ideal if you want to use leverage to take advantage of increasing prices. There is potential loss, but it is very limited to the premium paid. There is a lot of potential profit – in fact, it is unlimited profit potential.
Think About the Long Put
The long put, or buying puts, is another option for beginners. This may be a good option if you are bearish on a particular stock (or EFT or index). However, you may want to use this option if you want to take on less risk than short selling strategies. This option again has limited potential loss. The maximum amount of profit possible is capped, but there are exciting opportunities to consider.
Which is right for you? If you are unsure which of the options trading options are right for you, work with an advisory service. They can provide insight and support to you and guide your decisions.