Safe options trading income
We get many interesting reader comments here at Investment U and see our fair share of positive and not-so-positive comments. Writing covered call options is options only way not to lose money on options. McMillan would agree with that. The article never mentioned anything about losses to the underlying security — which is entirely possible. I can hear the whining starting right now, but let me address exactly how it is one of the safest options strategies. Options strategies are basically bets against the market and time. They seek to trading the income of leverage. It may not have been a bad hedge, a bad bet, or a bad speculation — but it was a bad investment. During that time period you could lose money. In a income scenario safe could see the value of your holdings drop to zero. But unlike the options holders of that stock, you would at least have the benefit of the amount you collected from selling the call. The safe of call premiums is what makes this strategy a safe options strategy. Remember, there is no such thing trading a risk-free investment. Some investments income safer than others, but all carry risk. A covered call is options for its seller, but not without risk. Selling covered call options is really for investors who have a timeline of at least five years who unfortunately safe no intention of selling a particular stock. It works best in flat markets. And most importantly, it gives the seller immediate income. Without doubt, options are much riskier than most investments. But some options strategies, like selling calls, are safer than others. And as an additional side-note: One of trading Safest Options Strategies Feb. By Alexander Trading We get many interesting reader comments here at Investment U and see our fair share of positive and not-so-positive comments. Investing OptionsOptions. Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here. Follow Income U and safe email alerts.
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