ADVANCED OPTIONS STRATEGIES
Free advanced options trading strategies courses teaching you the best strategy breakdown techniques such as credit spreads, debit spreads, iron condors, calendar spreads, straddles, strangles, and more. Our online classes are educational, easy to learn, and give you advanced knowledge on how to become a profitable option trader. Register for free below to gain access to our advanced options course as well as our other trading courses.
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Advanced Options Strategies Course
- Here’s what you’ll learn in our free advance options strategies course:
- The advantages of selling options over buying them
- How to sell calls and puts for premium
- How to short calls and puts
- Vertical spreads are the umbrella of spreads
- Learn how to trade credit spreads
- How to trade debit spreads
- Find out how to trade iron condors and butterflies
- How to trade straddles and strangles
- How to trade calendar spreads and diagonal spreads
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Advanced Options Strategies Course Breakdown
The world of options can be very difficult to learn for traders that are new to the industry. There are a lot of moving parts and that’s why we’ve broken down how to trade options strategies into two different courses. A beginners course as well as an advanced options trading course.
Our basic options course focuses on the components of options and how to trade calls and puts. Our advanced options strategies course focuses on how to put all of the different components together and trade options the way that they were meant to be traded.
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Large Cap Options Strategies
Calls and puts are the basic building blocks of options. Calls mean that you’re bullish on the stock and puts mean that you’re bearish on the stock. So, if you buy a call then you want the stock to go up and if you buy a put then you want the price of the stock to fall.
Trading naked calls and puts is a very lucrative strategy, however, this is a very dangerous way to trade if you’re not careful. There are advanced options strategies that will teach you how to take the basic components of options and turn them into lucrative and safer ways to trade. Check out our swing trade room.
Advanced options strategies allow you the ability to trade large cap stocks without having to put out a lot of capital up front. Believe it or not, options can be a safe way to trade if you know how to bring all of the components together and choose the right strategy.
Trading naked options doesn’t allow you the protection or room for the trade to go against you for a period of time. Many times stocks trade sideways and if you trade just calls and puts naked then you don’t have much wiggle room for the trade to form.
Buying calls and puts forces you to be right on the money with your trade. It’s important to remember that most options expire worthless. They are decaying assets, so if you choose the wrong direction of the trade then chances are you’ll end up with a worthless asset.
The price of your options contract will expire worthless, which is what happens to most new options traders, unless they get lucky. Many new traders have beginners luck but eventually their luck runs out, and this is the reason why many people say that options are “risky”. It’s because they didn’t know how to trade them the right way. Take our advanced options trading course and learn how to implement these strategies in our community.
Credit spreads are one of the most popular and safest options strategies. You become an options “seller” rather than an options buyer when implementing this trading strategy. Remember, options are decaying assets and most contracts expire worthless.
That’s why becoming an options seller puts the trading odds more in your favor over being a buyer. We’ll teach you how to sell credit spreads in this advanced options trading course. [read more]
Credit spreads are a combination of selling your “anchor strike” and then buying another strike OTM for protection. This combination of selling and buying an options contract leads to a credit. You’re collecting the premium from the buyer, since you are an options seller.
If the option expires worthless before expiration then you get to collect the full premium. We suggest closing out your position around 50% of profit and not holding until expiration.
Credit spreads allow you the room to be wrong on choosing the direction of the trade. A stock can trade sideways and you can still profit, since you are the options seller. Time is on your side. So, you don’t need to be as heavily directional biased as you would with other options strategies. Check out our stock picking service.
Debit Spreads Options Strategies
Debit spreads are a more directional type of trade than credit spreads. A little less than trading naked options, however, direction is very important.
You are an options “buyer” when you’re trading a debit spread, so you need the stock to move in the direction that you want it to go. This strategy typically starts with buying a strike in the money or at the money and then selling a strike OTM.
This combination leads to a “debit”, since money is leaving your account, whereas, credit spreads bring money into your account, since you’re the options seller.
Debit spreads do not afford you the luxury of trading sideways, since this is a decaying strategy, however, it gives you a bit more protection then trading a naked call or a put. Selling the additional strike, helps to lower the break even and profit levels, so there’s a bit more protection than just trading naked calls or puts.
Our swing trade room is a great place to practice what we teach in our advanced options strategies course. Our team live streams the markets and the trade setups that we are looking to take several mornings and afternoons per week. We do live mentoring, coaching, charting, and trading. Also, we go over our watch lists and also scan the markets for what’s running.
We pull up the charts, show support and resistance levels, and show the psychology and why we are looking at taking a potential trade. Feel free to ask questions and integrate yourself into our community. We like to think of our community as the “pay it forward” movement within the stock market. So our team and community members are very helpful.
We also have a day trade room available for those members that want to learn how to day trade. This room is more high paced than our swing trade room, since day trading is quicker strategy than swing trading. We also day trade options in both of our trade rooms.
Day trading options i also one of the most popular options strategies and is a very lucrative way to make money trading. Again, make sure to make yourself at home within our trade rooms and interact with other community members. Ask questions and practice implementing what you learn in our advanced options trading course in a virtual account.
If you want to become a successful and profitable trader than it’s going to take a lot of studying and practice over the course of several months, if not a year. It takes many traders over a year to become comfortable as a trader. So don’t rush the learning process.
If it takes you a bit longer than you’d like to get the hang of trading, don’t worry. That’s normal. Take our free trading courses for beginners.
Which Option Strategy Is Most Profitable and Riskiest?
Selling naked options are the most profitable option strategy and also the riskiest. They carry with them huge profit potential and the trading odds are more in your favor as an options seller. Selling naked options carries even more risk than buying naked options. The most that you can lose buying naked options is what you paid for the contract, whereas there is almost unlimited risk being a seller of naked options. That is why being a seller of spreads is a safer strategy than selling naked.
What Are the Best Options Strategies?
- Credit spreads are best strategy for safe options trading
- Debit spreads are directional while helping to limit risk
- Iron condors are good strategies for range markets
- Naked options are most profitable but are riskiest
- Trading odds in your favor as a seller over a buyer
How Many Options Strategies Are There?
- There are hundreds of options strategies but most common are:
- Buying naked calls and puts
- Selling naked options
- Credit and debit spreads
- Iron condors and iron butterflies
- Straddles and strangles
- Calendar spreads
- Diagonal spreads
- Covered calls