Trading Secrets: Killer trading strategies to beat the markets and finally achieve the success you deserve, 3rd Edition
by Louise Bedford
Chapter 20: Options multiply your results
In this chapter, you will learn that:
• Options are a leveraged tool, designed to be used by traders with previous experience who are trading unleveraged instruments such as equities.
• There are four main strategies you can use when trading options. You can buy a call, write a call, buy a put, or write a put. Trades combining these four separate actions are called spreads.
• If you own shares and write call options over them, you are writing covered calls. Naked calls are written when you don’t own the underlying stock.
• If you believe that the share is trending upward, an appropriate strategy would be to buy the stock, buy a call option or write a put option.
• If you believe that the share is trending ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access