The financial market can generate great gains and losses, so understanding options trading is essential for any investor. Recent financial reports indicate that the majority of contracts on the Chicago Mercantile Exchange expired without posting a gain for the option buyer. This data is surprising proof of the lack of understanding of this kind of investing. At Optioneer, we teach investors of all levels how to manage the risk of these contracts while aiming for a greater premium.
This type of trading involves the sale and purchase of contracts that allow the holder to buy an underlying security at a pre-determined price. This value is known as the strike price. The Optioneer methodology involves selling and holding index options with strike prices that are outside of market values. This means that when the contract expires, the entire premium is retained by the seller.
Understand Options Trading Methods
Optioneer's trading method is easy to understand. The basic premise of our theory includes:
Holding sold options with greater premium potential
Selling contracts at a precisely calculated price
Purchasing additional index options above and below the sale price to control risk
Understanding call and put options and moving them within set boundaries
Our system is taught over the course of two online training classes. The material is accessible to entry-level investors, but unique enough that experienced traders will learn new tricks. Once the system is understood, a portfolio can be managed in just a few minutes each day. Please contact us by email or telephone at 800-845-2502 to find out more.
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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