Strategies
January 5th, 2011
I am primarily an options writer. I sell both Puts and Calls, but my main focus is on selling Puts. I sell Puts in an attempt to acquire stocks that I want to own. Once acquired, I then sell calls on that stock to generate income and hopefully sell the stock at a higher strike price than I was ‘Put’ the stock.
This system isn’t as fast-paced or exciting as short-term trading, but it works. I have tried many strategies over the years and I always come back to options writing. It works for me and hopefully it will work for you. I think that most successful traders stick to a few simple strategies. Here are some further details on the strategies I use:
Stock is Rising
- Cash Secured Put
- Long Call
- Long Stock
- Covered Call
Stock is Falling
- Short Stock
- Long Put
- Covered Put
Stock is Neutral
- Short Strangle