The option spread is part of the basic strategy for investing in these holdings. An investor sells an equal number of calls and puts with the same option strike prices and expiration dates. Then to manage risk the investor buys an equal number of calls and puts to limit risk on the ones sold. This method can be one way to manage the risk that is associated with options. The Optioneer Trading method of managing these holdings involves taking out options with very high or low strike prices.
Calls and puts are sold above or below the anticipated market value of the investments. This spread ensures that when the options expire, they will be worthless to the buyer, and you (the seller) will be left with the total profit. While it's simple to understand, the Optioneer methodology does require some basic training.
We Offer Classes in Options Spreading
Optioneer's web-based platform gives investors all that is needed to manage investments. We also offer two complete training courses that help holders better understand relevant topics, including:
General information for novice investors
Risk-reducing options and spreads
Exercising discipline when buying and selling
Defining a market-exit strategy
Taken with our software, the training allows many people to cut down on the amount of time needed to manage a portfolio. With our methodology, investors can say goodbye to long days of research and calculations in front of a computer screen. In fact, many people are able to actively manage their spreads in just a few minutes each day. To find out more about selling spreads, please contact us by email or telephone at 800-845-2502.
The risk of loss in trading commodity futures and options can be substantial. Before trading, you should carefully consider your financial position to determine if futures trading is appropriate. When trading futures and/or options, it is possible to lose the full balance of your account. It is also possible to lose more than your initial deposit when trading futures and/or granting/writing options. As a result, selling/writing "uncovered" options exposes the seller/writer to the possibility of margin calls and virtually unlimited risk. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results.
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