what is the best strategy to trade in option?

i am in search of a strategy which can minimise my loss and maximise my profit in option trading.

Frank Castle // Apr 11, 2010 at 8:42 am

You losses are always 100% in the case of options.

It’s not like stocks where you can actually sell your shares when your losses are just 10%

If you cannot handle a 100% loss then you should stay away from options and move to safer investments like stocks, mutual funds, ETFs and Bonds.

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Homer Simpson // Apr 11, 2010 at 8:42 am

If you are asking this question, you should not be trading options. It is risky and not for people with no in depth knowledge.
monkey5465 // Apr 11, 2010 at 8:42 am

Depends on your risk level.
The more risk, the more profit

If you are feeling risky, then buy straight calls or puts. You’ll get the most profit, but it’s easy to loose it all.
Long Verticals are also in this category too, just cheaper to buy.

But, either way. Study up, and learn everything. Especially greeks.

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