When I discuss option strategies on
this blog, the emphasis will be on making money and managing risk.
The following are the methods I
recommend for investors who already understand how options work. For
rookies, I recommend the same strategies, but it's important not to begin
trading any of them without first gaining a good understanding of how each of
these strategies works and what you are trying to accomplish when you adopt
- Covered call writing
- Cash-secured naked put selling
- Credit and debit spreads
- Iron condors
- Diagonal, and double diagonal, spreads
As I continue to write this blog, I'll
offer tips on each strategy and reply to your questions.
For readers anxious to learn much more
about these methods more quickly, my newest book The Rookie's Guide to Options teaches you (in
detail) how to use each of these methods.