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2006-09-17 05:13:07 · 4 answers · asked by mefslf 1 in Business & Finance Investing

4 answers

Here it is, are you ready?

Unless you are willing to devote all of your resources, time, effort, even your life, then avoid options altogether. This is no hobby or part-time effort, but very advanced strategies that the novice cannot even imagine.

2006-09-17 15:51:38 · answer #1 · answered by dredude52 6 · 0 2

I think to answer your question it needs to be worded a little differently like - what is the most successful options strategy AND finish the question with a specific market type.

For instance, consider you are looking for an options strategy for xyz when it is in a strong uptrend - I would answer your question by saying to look for a pullback to a 20 period moving average and then by a call option - with the idea that the trend will resume from this point holding as support, and as it does your call would typically go up in value. You could do a similar trade in a down trend - where you bought a put on a pullback - looking for the trend to resume.

Or consider that xyz is trading in a very tight congestion range AND this is normally a very wide range trading volatile stock - you could buy a put and a call/what is called a straddle - not knowing which direction the stock was going to breakout BUT looking for a return to its normal volatility in which case one of your options would go up more than the cost and/or decline in the other option.

I suppose that someone else may answer that selling out of the money options and collecting the premium is the most successful strategy - something that I personally disagree with because you will be collecting very little premium AND your strategy will be one that is referred to as having limited return and unlimited risk.

Here is a link to a beginning options trading site and course that you might be interested in taking a look at:

http://www.thetradersresource.com/options-beginercourses.html

The great thing about options trading is the way that you can match any concept of future market movement with a strategy to profit if you are right about that movement - but you have to decide your scenario first to establish the strategy.

2006-09-17 05:39:47 · answer #2 · answered by sundance 2 · 1 0

Simple answer:

Most successful options strategy is one that works for you. One that you understand, has a positive expectancy, are comfortable and can execute over and over without emotion. (which takes practice)

There are hundreds of options strategies, some fairly simple, some more complex. While it's true that you could dedicate a lifetime to learning them, you don't have to. You just need to master one.

Hope that helps!

2006-09-18 15:00:20 · answer #3 · answered by Yada Yada Yada 7 · 1 0

one that fits your specific needs and customized just for you according to your age, health, income, debt, etc.
Primerica Financial Services

2006-09-18 09:57:18 · answer #4 · answered by Anonymous · 1 0

fedest.com, questions and answers