Posted by forex at 9:39 AM
Read our previous post
1.
Know your investment goals before doing any online options trading. It is impossible to see when you've gotten to your goal if you don't have one. You are the king of your investment and only you should determine your tolerance for risk.
2.
Examine your current portfolio. If you find that you are heavily invested in a company, one of the best ways to do online options trading is to buy puts. If the underlying stock tanks, then the puts will become substantially valuable. This will allow you to absorb your stock loss and even make money on the ride down.
3.
Look for stable stocks in your portfolio. If you have stocks that you are holding for the long term that are relatively free of volatility, then you may consider selling covered calls. This allows you to sell the chance that your stock will go up to someone else. If your stock remains stable, you will keep the premium paid for the option. If the stock goes up drastically then you will be able to profit on the rise in the price of the underlying stock.