Before we get deep in options trading, you must understand the meaning of options trade. An option is a contract that allows an investor to buy or sell assets such as security or ETF for a specific period and at a fixed price. The period might be short or long, like for several years, and it will depend on the option contract. We have two types of options contract the call option, and with this contract, the investor has the right to buy a hundred shares of the assets at a given price for a specified time. Learn more about consistent options income. We also have the put option contract whereby it gives the investor the right to sell a hundred shares of the assets for a particular time and price. In both the call and put option, the investor does not have an obligation to their rights when they sell or buy the assets. When you get into options trading, you need to get the ideal trading strategy that will ensure you are getting profit from selling the assets. The investor can use several types of strategies, and each has the risks and rewards the investor gets.

One of the strategies that the investor can get is the covered call; with this type of options trade strategy, the investor is neutral to the assets. In the covered call, the investor buys a hundred shares of the regular stock, and then when selling, you will sell one call option per hundred shares of the stock. The sale will help you in making a profit with the option and also reduce the risk of your investment stock. Learn more about Clearcreek Consulting. Another type of option trading strategy is the straddles and strangles, and in the strategy, the investor is expecting the value of the stock will shoot or can depreciate. In the straddles strategy, the investor will buy a call and put option at the same price, and for a particular period. When the investor does not know how the stock will move, the investor can use the strangles option trading strategy. And just like the straddles, the investor will buy both the call and put option at the same prices and for a particular time. We have the selling iron condors option trading strategy, and in this strategy, the investor knows the direction in which the assets will go. And when the price goes up or down, the investor will make a profit. Learn more from https://en.wikipedia.org/wiki/Stock_market_education.