Exons Group Review: Ultimate Strategies for Options Traders

Traders often come into the options market knowing very little about the different options strategies available to them. Many choices and methods seek to maximize profit while reducing risk. With a little effort, traders can learn how to effectively utilize the strength as well as versatility that stock options provide. Although options trading may seem complicated, most investors may utilize these simple tactics to increase returns, place bets on the direction of the market, or protect current positions. In this blog, Exons Group has shared top strategies to be successful in the field of options trading after a substantial amount of research. Let’s look into that. 

• Covered Call

Aside from just purchasing call options, the most common option strategy is probably arranging a covered call deal. Because it pays off and lowers some of the risk associated with simply holding the stock, this method is highly popular. The downside is that you have to be prepared to sell your stock at the short strike price, which is a predetermined amount. In order to put the technique into action, you buy the underlying stock as usual and at the same time, write down or sell a call option on those identical shares.

• Bear Put Spread

A vertical spread method is the bear put spread. Exons Group points using this method, the investor buys the same quantity of put options at one strike price and simultaneously sells them at a strike rate that is lower. The exact same underlying asset is used to purchase both options, and their expiration dates are equivalent. When a trader is expecting a drop in the price of the asset being traded and has a bearish emotion towards it, they employ this technique. Both modest gains and limited losses are possible with this method.

• Married Put

Buying an asset, such as stock shares, and simultaneously buying put options for the same number of shares is known as a married put strategy. Each put option deal is worth 100 shares, and the holder has the opportunity to sell the asset at the strike price. When holding stocks, an investor may decide to employ this technique to reduce their negative risk. Exons Group says If the stock price drops significantly, this technique creates a floor price, much like an insurance policy. For this reason, it sometimes goes by the name “protective put.”

Are “Protective Puts” a Financial Waste? Learn What Exons Group Shares

Exons Group articulatesTraders can insure their portfolio against losses by purchasing protective puts. Similar to other insurance kinds, traders pay the insurer a regular payment in the hopes of never having to make a claim. The same is true with portfolio protection: traders will come out ahead if the market does crash because they paid for the insurance.

Conclusion

Although newcomers to the market may find options trading scary, there are tactics that can assist reduce risk and maximize reward. Options for investors who already own the underlying asset include married puts, covered calls, and bear put spreads. To learn more about Options Trading, visit Exons Group’s website.