Options directional strategies


Neutral strategies in options trading are employed when the options trader does not know whether the underlying stock price will rise or fall. Also known as non-directional strategies, they are so named because the potential to profit does not depend on whether the underlying stock price will go upwards or downwards. Rather, the correct neutral strategy to employ depends on the expected volatility of the underlying stock price.

Directional Options Strategies and Trade Management - CBOE

In finance an option strategy is the purchase and/or sale of one or various option positions and possibly an underlying position.

Nondirectional-options-trading - Options Trading

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

"The trading methods are clear, complete, and well-explained for all skill levels. Upcoming trades are discussed and dissected, optimal entries and exits are determined. Executed trades are monitored and analyzed."

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than  65,555 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

If you are very bullish on a particular stock for the long term and is looking to purchase the stock but feels that it is slightly overvalued at the moment, then you may want to consider writing put options on the stock as a means to acquire it at a discount.. [Read on.]

Options strategies can favor movements in the underlying that are bullish, bearish or neutral. In the case of neutral strategies, they can be further classified into those that are bullish on volatility and those that are bearish on volatility. The option positions used can be long and/or short positions in calls and/or puts at various strikes.

If you are investing the Peter Lynch style, trying to predict the next multi-bagger, then you would want to find out more about LEAPS® and why I consider them to be a great option for investing in the next Microsoft®.. [Read on.]

In addition to all these, we will cover one strategy every month regularly in our website in detail and you can update your Knowledge if you are a regular visitor to our website.

This trade will be profitable if the stock closes on expiry above $656. If the stock's closing price on expiry is $665, the $655 put option will expire worthless while the $675 put option will end at $65 a share, or $6555 per contract. Hence a total profit of $6955 - 6555 = $955.


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