The trading in options is not a child’s play and one has to be the master of market. One should be aware of all the tricks and strategies to succeed in the trade. An amateur who makes random moves in the stock market or doesn’t have ample amount of knowledge should better take the tutorials first or not enter into this business without thorough knowledge. In today’s world you cannot walk linear on any track to be successful. It is important to understand the right strategies to accomplish the goals and so is the case with the trading in options.

 It involves huge amount of risk that has led many people to incur loss in their initial years in trading. However, those who know the right track to success have opted for the Options Strategy. There are different types of strategies that once can opt; some of which are for the beginners and some for the masters who wish to pocket huge gains.

What are the different types of Options Strategies?

Bullish Strategy: The bullish strategy works when the investor is expecting the value of option to get increased in the market in the specified time. What is required to do in this strategy is to make the right prediction of how up the price of stock can go into the particular time period.

Selling Credit Strategy: This is a simple strategy that demands deep analysis and understanding of the market trends. It is not advised for those who lack the knowledge of market or for the beginners. The person needs to spend some time every week to monitor the market trend. With correct analysis, one can gain huge profits with this strategy.

Complex Strategy: Complex strategies are the type of option trading strategy that people opt frequently; at least those who master the game. It involves low amount of risk and high profits but the flip side is that investments are costly. It includes calendar straddles, strangles, butterflies and other such type of strategies.

Strategies for Beginners

• Covered Call Writing: The strategy of covered call writing allows a person to sell off the option of call which further enables the buyer to buy the option at particular rate within specified time. There is less risk involved and mostly it appears only in the case if the stock price gets depreciated in the market.
• Married Put Strategy: With this strategy investor who has assets or stocks can buy Put option for the equal amount of shares. It can be used by the investor to protect himself against the expected loss.

There are many other strategies that can be used. However, one should opt for any strategy with proper understanding of them and apply then it on the correct market situation.