Bullish Trading Options Strategies
Bullish trading options strategies mean that in order to make a profit
, investors are aiming and waiting for the price of asset or options to go up. Each of the strategy includes instructions in making trades using several strategies, detailed description, and calculations of rewards or risks with its chart. These bullish strategies include the long call, short covered call, long covered call, and the bull call spread. The long call is certainly one of the simplest options strategies. The investors or traders purchase a call contract and just wait for its price to go up. The call contract can be bought at the money, in the money, or simply out of the money. Thus, the trade makes profit when the price goes above the so called strike price with the addition of the premium price which is the amount that is paid for that call contract. Next is the short covered call. This is an option strategy that simply involves both options and stock contract. The investors or trader buys the stock and then put up a sale on the call contract and then patiently waits for that option contract to expire or exercised. It can also be a call out of the money that allows the making of the profit on both the stock and the options contract. It can also be in the money call that provides much higher protection if there is a decrease of price against the trade. Another one of the trading options strategies is the long covered put. This used insurance for the trade that already exists. The investors or traders buy stock, then buy a single put contract, and wait for that stock trade to make a profit by the amount that deals with the cost of the put or the option premium. When the stock price goes up enough, that stock will then be sold to make a profit. The put contract can also be sold too, to be able to get back come of its original premium. However, when the price drops, the put will then be exercised. The stock will then be sold at the so called strike price. This may or may not get back the option premium depending on the difference between the strike price and the stock price when bought. Last but not the least of the bullish trading options strategies is the bull call spread. This uses the two calls combination yet is still s simple single direction. The investors or traders purchases a single call contract when in strike price and sell that contract in a much higher strike price. When the price goes up even in just a small amount, both the calls will make a profit. When the price goes down, then neither of the calls can make a profit. This trade is then entered as the debit spread strategy. Choosing from these option strategies can definitely offers investors and traders profit. Patience and cleverness can also be very helpful in dealing with options.Bullish Trading Options Strategies
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