How does the options market make money in the direction?

Mondo Finance Updated on 2024-01-31

There are a variety of options trading strategies to earn money in the direction of the market, and here are some suggestions:

1.Buy Call Buy Put:

Choose a shallow out-of-the-money contract, preferably only one out-of-the-money contract (both current and far month contracts).

Avoid deeper out-of-the-money contracts, especially December contracts, as the risk of zeroing is greater.

2.Sell Call Sell Put:

Try to avoid choosing too real value contracts to reduce the possibility of exercising risk.

3.Synthetic spot long short:

Choose an at-the-money next month contract to form a long or short position on the underlying asset through a combination of options.

4.Bull Spread Bear Spread Combination:

Bull spread: Lock in the maximum profit and the maximum loss. Choose between a dual real money call or a double out-of-the-money put.

Bear spread: Locks in the same maximum gain and maximum loss. Choose between a double real money put or a double out-of-the-money call.

5.*Straddle:

Try to choose a long-month contract (such as a next-month contract), which is not suitable for long-term holding and is suitable for short-term time nodes.

Options circle collated and released.

Precautions:

For spread trading, it is necessary to wait for a while for the profit to become profitable.

Bull spreads are not available to traders, unless the option has a short remaining duration.

Straddle is suitable for short-term time nodes, not for long-term holding.

The above strategies involve judging market trends and having a certain understanding of the sensitivity of options.

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