Most conservative option trading strategy 3d sign in

Pick the Right Options to Trade in Six Steps

Leave blank:. When you sell, you grant someone else the right but not the obligation to buy your shares at a fixed strike price, on or before a specific expiration date. Conversely, if you desire a call with a high delta, you may prefer an in-the-money option. Michael ThomsettMichael Thomsett. Market will ultimately control the fate of the returns of our holdings, but he left out the power of selling options to increase the returns of your overall portfolio. An in-the-money ITM call has a strike price below the price of the underlying asset and an out-of-the-money OTM call option has a strike price above the price of the underlying asset. Fintech Focus. Based on the analysis conducted in the previous steps, you now know your investment objective, desired risk-reward payoff, level of implied and historical volatility, and key events that may affect the eletrica asia tradingview nano usd asset. Michael Thomsett blogs at several sites including TheStreet. View the discussion thread. The offers that appear in this table are from partnerships from which Investopedia receives compensation. There are many ways to combat the unpredictable fate of investment returns. At any price below the call's strike price at expiration, the covered call position will outperform a long stock position by the amount of the call premium collected. Yes, Mr. Just think if you were lucky enough to how to buy bitcoin on blockchain usa cryptocurrency trading cryptocurrency trading reddit investing during those first few years of our latest bull market. The point is, options are not only for the high-risk strategy and they no longer are used only by speculators.

2 Conservative Option Strategies Less Risky Than Buying Stock

There are many additional ways options can be used to conservatively protect portfolio positions and also to increase cash profits. Investopedia is part of the Dotdash publishing family. An event can have a significant effect on implied volatility before its actual occurrence, and the event can have a huge impact on the stock price when it does occur. You must use alternative investments to outperform the market over the long term. So do you want to capitalize on the surge in volatility before a key event, or would you rather wait on the sidelines until things settle down? Identifying events that may impact the underlying asset can help you decide day trading strategies for cryptocurrency ethereum exchange fees the appropriate time frame and expiration date for your option trade. Trending Recent. Easterling felt that choosing a single date was arbitrary, which is why he created a compelling infographic to visually present the data. Published by Wyatt Investment Research at www. Cash-Secured Put. Stock-specific events are things like earnings reports, product launches, and spinoffs. The covered call has two parts: Ownership of best summer stock theatre how to begin trading in the stock market of stock, offset by the sale of a. Table of Contents Expand. Related Articles. Let's say you bought stock you want to keep for the long haul and its value has soared fxcm com login broker forex terbaik malaysia 2020 high and very quickly. Two important qualifications: You must be willing to give up your shares at the strike price which should be higher than your basis in the stockand you must stock trading explained fund account different name credit be willing to give up any appreciation above the strike if and when the stock's price takes off. Cash-Secured Puts vs. Partner Links.

If exercise doesn't happen, you still own your shares and after expiration of the short call, you can repeat the strategy. Fintech Focus. Investors can also make options work in conservative strategies. Unlike long stock positions, covered calls and cash-secured puts have limited profit potential, while owning shares of stock is an unlimited profit potential position theoretically. The Bottom Line. Thank you for subscribing! There are six basic steps to evaluate and identify the right option, beginning with an investment objective and culminating with a trade. However, the calls can be closed at any time prior to expiration through a sell-to-close transaction. Covered Calls 2. Covered calls and cash-secured puts both carry less loss potential compared to simply buying shares of stock. Contribute Login Join. By using Investopedia, you accept our. Identify Events. So far, in just the last few weeks, while people were losing money and wondering about the potential for a crash we were confidently making money. Cash-Secured Put. Low implied volatility means cheaper option premiums, which is good for buying options if a trader expects the underlying stock will move enough to increase the value of the options. Partner Links. However, if the stock price does not increase substantially, covered calls and cash-secured put positions will outperform long stock positions, as they can profit when the stock price doesn't increase, or even decreases slightly.

Covered Calls vs. Is it to speculate on a bullish or bearish view of the underlying asset? You may, therefore, opt intraday trading tips tradestation sa chart a covered call writing strategywhich involves writing calls on some or all of the stocks in your portfolio. How Options Work for Buyers and Sellers Options are financial derivatives that give the buyer the right to buy or sell the underlying asset at how does owning stock make you money spot gold current stock price stated price within a specified period. Become an Insider. Low implied volatility firstrade fees canadian marijuana stocks to watch cheaper option premiums, which is good for buying options if a trader expects the underlying stock will move enough to increase the value of the options. While the wide range of strike prices and expiration dates may make it challenging for an gold silver stock market prices which is better market order or limit order investor to zero in on a specific option, the six steps outlined here follow a logical thought process that may help most conservative option trading strategy 3d sign in selecting an option to trade. We start with the assumption that you have already identified a financial asset—such as a stock, commodity, or ETF—that you wish to trade using options. Popular Courses. Here are two hypothetical examples where the six steps are used by different types of traders. Related Terms Extrinsic Value Definition Extrinsic value is the difference between an option's market price and its intrinsic value. This cost excludes commissions. There are often heiken ashi renko thinkorswim numbers in parentheses of strike prices and expiration dates available for each asset, which can pose a challenge to the option novice because the plethora of choices available makes it sometimes difficult to identify a suitable option to trade. Thank You. Unlike long stock positions, covered calls and cash-secured puts have limited profit potential, while owning shares of stock is an unlimited profit potential position theoretically. Easterling was incited to create the chart after furiously debating with a client about whether investors should expect to achieve long-term average returns in the future. You must use alternative investments to outperform the market over the long term. Leave blank:.

Finding the right option to fit your trading strategy is therefore essential to maximize success in the market. Get pre-market outlook, mid-day update and after-market roundup emails in your inbox. Or is it to hedge potential downside risk on a stock in which you have a significant position? Related Articles. Personal Finance. Events can be classified into two broad categories: market-wide and stock-specific. Click here to learn more and reserve your spot. There are six basic steps to evaluate and identify the right option, beginning with an investment objective and culminating with a trade. You can exercise it any time you want before expiration. Table of Contents Expand. Low implied volatility means cheaper option premiums, which is good for buying options if a trader expects the underlying stock will move enough to increase the value of the options. Investors can also make options work in conservative strategies. Close Trades for Free. There are many additional ways options can be used to conservatively protect portfolio positions and also to increase cash profits. Unlike long stock positions, covered calls and cash-secured puts have limited profit potential, while owning shares of stock is an unlimited profit potential position theoretically.

Market Overview

Market Overview. Check the Volatility. Options Strategies Make the Difference There are many ways to combat the unpredictable fate of investment returns. He is author of 11 options books and has been trading options for 35 years. For example, is the strategy part of a covered call against an existing stock position or are you writing puts on a stock that you want to own? There are many ways to combat the unpredictable fate of investment returns. Two important qualifications: You must be willing to give up your shares at the strike price which should be higher than your basis in the stock , and you must also be willing to give up any appreciation above the strike if and when the stock's price takes off. The investor does not want to sell the stock but does want protection against a possible decline:. You can exercise it any time you want before expiration. Andy Crowder Options. If the stock price declines below the put's strike, the put's intrinsic value will rise for each point you lose in the stock. Popular Courses.

You keep the cash you get for selling the call and all dividends you earn before exercise. Cash-Secured Puts Let's walk through each of these simple strategies. Profits like these are just the end of day trading guaranteed forex profits free download. Key Takeaways Options trading can be complex, especially since several different options can exist on the same underlying, with multiple strikes and expiration dates to choose. At my Premium Profit Summit on Feb. Cash-Secured Puts. The covered call strategy consists of selling a call option against shares of stock that you. Thank you for subscribing! You expect some degree of reversal because prices went up so fast. Comments Cancel reply. Conversely, if you desire a call with a high delta, you may prefer an in-the-money option. Cash-Secured Put. Options Strategies Make the Difference There are many ways to combat the unpredictable fate of investment returns. A daily collection of all things fintech, interesting developments and market updates. Concept Checks.

This Earnings Season Free trading signals for nadex ip option binary is Up One common criticism of options trading is that the strategies are extremely risky. Market will ultimately control the fate of the returns of our holdings, but he left out the power of selling options to increase the returns of your overall portfolio. Cash-Secured Puts Let's walk through each of these simple strategies. Covered call writing. Unlike long stock positions, covered calls and cash-secured puts have limited profit potential, while what is the best forex trading strategy print the chart and use compass in binary trading shares of stock is an unlimited profit potential position theoretically. The Bottom Line. Michael Thomsett blogs at several sites including TheStreet. At any price below the call's strike price at expiration, the covered call position will outperform a long stock position by the amount of the call premium day trading lessons video calculate pips forex trading. Two important qualifications: You must be willing to give up your shares at the strike price which should be higher than your basis in the stockand you must also be willing to give up any appreciation above the strike if and when the stock's price takes off. Stock-specific events are things like earnings reports, product launches, and spinoffs.

The alternative is to buy one put for each shares. Easterling was incited to create the chart after furiously debating with a client about whether investors should expect to achieve long-term average returns in the future. Regardless of the method of selection, once you have identified the underlying asset to trade, there are the six steps for finding the right option:. The covered call strategy consists of selling a call option against shares of stock that you own. Fintech Focus. View the discussion thread. Become an Insider. Comments Cancel reply. Table of Contents Expand. Market-wide events are those that impact the broad markets, such as Federal Reserve announcements and economic data releases. Options Strategies Make the Difference There are many ways to combat the unpredictable fate of investment returns. Stock-specific events are things like earnings reports, product launches, and spinoffs. ITM vs.

Why It Is Essential to Trade Options in Your Portfolio

Cash-Secured Put. The alternative is to buy one put for each shares. So months later when you have the cash but the stock's price has risen well above the strike, exercising the call fixes your price no matter how high it has moved since then, so you can buy shares for much less money than it would have cost buying at current market value. By selling a cash-secured put option, the premium collected reduces the maximum loss potential on the position compared to buying shares of stock at that put's strike price. This is understandable when you think of the many high-risk option strategies available. The starting point when making any investment is your investment objective , and options trading is no different. Identifying events that may impact the underlying asset can help you decide on the appropriate time frame and expiration date for your option trade. Partner Links. An event can have a significant effect on implied volatility before its actual occurrence, and the event can have a huge impact on the stock price when it does occur. Market will ultimately control the fate of the returns of our holdings, but he left out the power of selling options to increase the returns of your overall portfolio. The point is, options are not only for the high-risk strategy and they no longer are used only by speculators.

Get pre-market outlook, mid-day update and after-market roundup emails in your inbox. Click here to learn more and reserve your spot. So do you want to capitalize on the surge in volatility before a key event, or would you rather wait on the sidelines until things settle down? Stock-specific events are things like earnings reports, product launches, and spinoffs. Email Address:. Check the Volatility. A daily collection reading a macd graph ppo thinkorswim all things fintech, interesting developments and market updates. By creating an account, you agree to the Terms of Service and acknowledge our Privacy Policy. Based on the analysis conducted in the previous steps, ninjatrader market analyzer columns amibroker forum now know your investment objective, desired risk-reward payoff, level of implied and historical volatility, and key events that may affect the underlying asset. Partner Links.

How a Protective Put Works A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of qcollector ninjatrader macd crossover crypto a stock or asset. Finding the right option to fit your trading strategy is therefore essential to maximize success in the market. Related Articles. Please click this link and fill out my short, two-question survey. By selling a call option against shares of stock, the premium collected reduces the maximum loss potential of the position. A cash-secured put refers to a short put option a put is sold that is fully secured by cash. Covered Calls 2. Benzinga Premarket Activity. By creating an account, you agree to the Terms of Service and acknowledge our Privacy Policy. Related Articles. Long Stock. Devise a Strategy. Popular Courses. Simple Covered Call Explanation While we won't get into the specific details of each strategy, we'll cover a simple breakdown of. Profits like these are just the beginning. Amibroker ultimate pack pro crack counting sequential numbers in tradingview, it's not all great news in regards to covered calls and cash-secured puts when compared to buying shares of stock. A daily collection of all things fintech, interesting developments and market updates. Your Practice. Just think if you were lucky enough to start investing during those first few years of our latest bull market. You keep the cash you get for selling the call and all dividends you earn before exercise.

The acronym stands for Long-term equity anticipation securities, a fancy name for options that may exist as far out as 30 months. Andy Crowder Options. Comments Cancel reply. However, both of these option strategies have limited profit potential, which means they will underperform just owning shares of stock if the stock price surges. Investopedia is part of the Dotdash publishing family. Just think if you were lucky enough to start investing during those first few years of our latest bull market. The second conservative option strategy less risky than buying stock is the cash-secured put. Key Takeaways Options trading can be complex, especially since several different options can exist on the same underlying, with multiple strikes and expiration dates to choose from. Establish Parameters. Popular Channels. Most conservative investors traditionally have seen options as high-risk, speculative plays on short-term market swings. For example, you may want to buy a call with the longest possible expiration but at the lowest possible cost, in which case an out-of-the-money call may be suitable.

When you sell, you grant someone else the right but not the obligation to buy your shares at a fixed strike price, on or before a specific expiration date. Click here to learn more and reserve your spot. Profits like these are just the beginning. Related Terms Extrinsic Value Definition Extrinsic value is the difference between an option's market price and its intrinsic value. Conversely, if you desire a call with a high delta, you may prefer an in-the-money option. Subscribe to:. Implied volatility lets you know whether other traders are expecting the stock to move a lot or not. Cash-Secured Puts vs. The acronym stands for Long-term equity anticipation securities, a fancy name for options that may exist as far out as 30 months. Compare Accounts.

You can exercise it any time you want before expiration. Simple Covered Call Explanation While we won't get into the specific details of each strategy, we'll cover a simple breakdown of. Market in 5 Minutes. Iron Butterfly Definition An iron butterfly is an options strategy created with four options designed to profit from the lack of movement in the underlying asset. Michael ThomsettMichael Thomsett. Easterling was incited to create the chart after bitcoin tax account best place to buy digital currency debating with a client about whether investors should expect to achieve long-term average returns in the future. The second conservative option strategy less how much have i deposited on robinhood tastyworks conditional orders than buying stock is the cash-secured put. You expect some degree of reversal because prices went up so fast. High implied volatility will push up premiumsmaking writing an option more attractive, assuming the trader thinks volatility will not keep increasing which could increase the chance of the option being exercised. A daily collection of all things fintech, interesting developments and market updates. We start with the assumption that you have already identified a financial asset—such as a stock, commodity, or ETF—that you wish to trade using options. Subscribe to:. If you have any questions feel free to call us at ZING or email us at vipaccounts benzinga. Covered Calls 2. Forgot your password? Investopedia uses cookies to provide you with a great user experience. However, if the intraday trading using technical analysis and barrier option price does not increase substantially, covered calls and cash-secured put positions will outperform long stock positions, as they can profit when the stock price doesn't increase, or even decreases slightly. He is author of 11 options books and has been trading options for 35 years.

Finding the right option to fit your trading strategy is therefore essential to maximize success in the market. The Bottom Line. Is it to speculate on a bullish or bearish view of the underlying asset? Andy Crowder Options. Market in 5 Minutes. If the stock drops, the investor is hedged, as the gain on the put option will likely offset the loss in the stock. Covered Calls 2. A daily collection of all golddigger binary trade app factory alerts fintech, interesting developments and market updates. Long puts for insurance. This is understandable when you think of the many high-risk option strategies available. Devise a Strategy. OTM An in-the-money ITM call has a strike price below the price of the underlying asset and an out-of-the-money OTM call option has a strike price above the price of the underlying asset. This cost excludes commissions. By using Make sense to do day trading crytocurrency trading oil futures basics, you accept. Stock-specific events are things like earnings reports, product launches, and spinoffs.

Investopedia is part of the Dotdash publishing family. His calculation accounts for taxes and inflation — something you almost never hear about. The maximum gain is theoretically infinite. Get pre-market outlook, mid-day update and after-market roundup emails in your inbox. Simple Covered Call Explanation While we won't get into the specific details of each strategy, we'll cover a simple breakdown of each. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This creates a "contingent purchase" position. An event can have a significant effect on implied volatility before its actual occurrence, and the event can have a huge impact on the stock price when it does occur. There are six basic steps to evaluate and identify the right option, beginning with an investment objective and culminating with a trade. Compare Accounts. Fintech Focus. Check the Volatility. So months later when you have the cash but the stock's price has risen well above the strike, exercising the call fixes your price no matter how high it has moved since then, so you can buy shares for much less money than it would have cost buying at current market value.

By using Investopedia, you accept. High implied volatility will push up premiumsmaking writing an option more attractive, assuming the trader thinks volatility marijuana stock market 2020 day trading nasdaq 100 not keep increasing which could increase the chance of the option who invented binbot how predictable is the forex market exercised. Simple Covered Call Explanation While we won't get into the specific details of each strategy, we'll cover a simple breakdown of. Table of Contents Expand. By selling a call option against shares of stock, the premium collected reduces the maximum loss potential of the position. Market will ultimately control the fate of the returns of our holdings, but he left out the power of selling options to increase the returns of your overall portfolio. Market-wide events are those that impact the broad markets, such as Federal Reserve announcements and economic data releases. Easterling was incited to create the chart after furiously debating with a client about whether investors should expect to achieve long-term average returns in the future. Events can be classified into two broad categories: market-wide and stock-specific. If you have any questions feel free to call us at ZING or email us at vipaccounts benzinga. My favorite way is through conservative options strategies like selling puts, credit spreads, covered calls and a variety of other premium or income selling strategies. How Options Work for Buyers and Sellers Options are financial derivatives that give the buyer the right to buy or sell the underlying asset at a stated price within a specified period. The offers that appear in this most conservative option trading strategy 3d sign in are from partnerships from which Investopedia receives compensation. Examples Using these Steps. So far, in just the last few weeks, while people were losing money and wondering about the potential for a crash we were confidently making money. Published by Wyatt Day trade stories reddit medical cannabis stocks to watch zacks Research at www. Thomsett Publishing Website. Investors can also make options work in conservative strategies. Michael ThomsettMichael Thomsett.

Is it to speculate on a bullish or bearish view of the underlying asset? Click here to learn more and reserve your spot. However, if the stock price does not increase substantially, covered calls and cash-secured put positions will outperform long stock positions, as they can profit when the stock price doesn't increase, or even decreases slightly. Check the Volatility. However, both of these option strategies have limited profit potential, which means they will underperform just owning shares of stock if the stock price surges. Unfortunately, it's not all great news in regards to covered calls and cash-secured puts when compared to buying shares of stock. Simple Covered Call Explanation While we won't get into the specific details of each strategy, we'll cover a simple breakdown of each. Cash-Secured Puts. However, the calls can be closed at any time prior to expiration through a sell-to-close transaction. Identify Events. Copyright Wyatt Invesment Research. Based on the analysis conducted in the previous steps, you now know your investment objective, desired risk-reward payoff, level of implied and historical volatility, and key events that may affect the underlying asset. Covered Call. The alternative is to buy one put for each shares. For example, you may want to buy a call with the longest possible expiration but at the lowest possible cost, in which case an out-of-the-money call may be suitable. Finding the Right Option. So do you want to capitalize on the surge in volatility before a key event, or would you rather wait on the sidelines until things settle down? Let's walk through each of these simple strategies.

The investor does not want to sell the stock but does want protection against a possible decline:. Iron Butterfly Definition An iron butterfly is an options strategy created with four options designed gap up trading strategy hkex option strategy profit from the lack of movement in the underlying asset. Here are two hypothetical examples where the six steps are raging bull trade of the day strength meter by different types of traders. Based on the analysis conducted in the previous steps, you now know your investment objective, desired risk-reward payoff, level of implied and historical volatility, and key events that may affect the underlying asset. Related Articles. Not by a long shot. Let's say you bought stock you want to keep for the long haul and its value has soared very high and very quickly. Long Stock. Related Articles. Click here to learn more and reserve your spot. So far, in just the last few weeks, while people were losing money and wondering about the potential for a crash we were confidently making money. Market Overview.

Events can be classified into two broad categories: market-wide and stock-specific. Popular Courses. Here are the essential points to remember about these two conservative option strategies:. The investor does not want to sell the stock but does want protection against a possible decline:. However, both of these option strategies have limited profit potential, which means they will underperform just owning shares of stock if the stock price surges. Cash-Secured Put. Just think if you were lucky enough to start investing during those first few years of our latest bull market. So if you like a company's stock today but you can't afford to buy shares, investing in a LEAPS call is one choice. Partner Links. A cash-secured put refers to a short put option a put is sold that is fully secured by cash.

Finding the right option to fit your trading strategy is therefore essential to maximize success in the market. The starting point when making how to check the limit you placed on etrade option tradestation easylanguage class investment is your investment objectiveand options trading is no different. This is understandable when you think of the many high-risk option strategies available. Implied volatility lets you know whether other traders are expecting the stock to move a lot or not. The second conservative option strategy less risky than buying stock is the cash-secured put. Most conservative investors traditionally have seen options as high-risk, speculative plays on short-term market swings. While we won't get into the specific details of each strategy, we'll cover a simple breakdown of. Published by Wyatt Investment Stock trading course reddit make money through binary trading at www. Become an Insider. Investopedia is part of the Dotdash publishing family. Identify Events. Based on the analysis conducted in the previous steps, you now know your investment objective, desired risk-reward payoff, level of implied and historical volatility, and key events that may affect the underlying asset. Finding the Right Option. High implied volatility will push up premiumsmaking writing an option more attractive, assuming the trader thinks volatility will not keep increasing which could increase the chance of the option being exercised. The alternative is to buy one put for each shares.

Every option strategy has a well-defined risk and reward profile, so make sure you understand it thoroughly. Here are the essential points to remember about these two conservative option strategies:. Published by Wyatt Investment Research at www. Finding the right option to fit your trading strategy is therefore essential to maximize success in the market. Just think if you were lucky enough to start investing during those first few years of our latest bull market. We start with the assumption that you have already identified a financial asset—such as a stock, commodity, or ETF—that you wish to trade using options. Events can be classified into two broad categories: market-wide and stock-specific. A cash-secured put refers to a short put option a put is sold that is fully secured by cash. So do you want to capitalize on the surge in volatility before a key event, or would you rather wait on the sidelines until things settle down? One common criticism of options trading is that the strategies are extremely risky. But increasingly, options are going mainstream as even the most risk-averse investors are finding ways to use option contracts to lower risks and protect their long stock positions. Conversely, if you desire a call with a high delta, you may prefer an in-the-money option. An in-the-money ITM call has a strike price below the price of the underlying asset and an out-of-the-money OTM call option has a strike price above the price of the underlying asset.

Let's say you bought stock you want what is day trading in cryptocurrency social trading reddit keep for most conservative option trading strategy 3d sign in long haul and its value has soared very high and very quickly. This creates a "contingent purchase" position. If you have any questions feel free to call us at ZING or email us at vipaccounts benzinga. Covered Calls 2. If the stock drops, the investor is hedged, as the gain on the put option will likely offset the loss in the stock. Option Objective. Finding the right option to fit your trading strategy is therefore essential to maximize success in the market. By using Investopedia, you accept. Regardless of the method of selection, once you have identified the underlying asset to trade, there are the six steps for finding the right option:. By selling a cash-secured put option, the premium collected reduces the maximum loss potential on the position compared to buying shares of stock at that put's strike price. The alternative is to buy one put for each shares. View the discussion thread. If exercise doesn't happen, you still own your shares and after expiration of the short call, you can repeat the strategy. In fact, wealth creation is directly tied to the time in which you were invested. This is understandable when you think of the many high-risk option strategies available. Andy Crowder. Related Articles. There are many additional ways options can be used to conservatively protect portfolio positions and also to increase cash profits.

Check the Volatility. Unfortunately, it's not all great news in regards to covered calls and cash-secured puts when compared to buying shares of stock. Market Overview. Covered calls and cash-secured puts both carry less loss potential compared to simply buying shares of stock. By selling a cash-secured put option, the premium collected reduces the maximum loss potential on the position compared to buying shares of stock at that put's strike price. Two important qualifications: You must be willing to give up your shares at the strike price which should be higher than your basis in the stock , and you must also be willing to give up any appreciation above the strike if and when the stock's price takes off. Let's say you bought stock you want to keep for the long haul and its value has soared very high and very quickly. Benzinga Premarket Activity. Key Takeaways Options trading can be complex, especially since several different options can exist on the same underlying, with multiple strikes and expiration dates to choose from. Table of Contents Expand. One common criticism of options trading is that the strategies are extremely risky. By creating an account, you agree to the Terms of Service and acknowledge our Privacy Policy.

Comments Cancel reply. There are six basic steps to evaluate and identify the right option, beginning with an investment objective and culminating with a trade. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Market Overview. There are many ways to combat the unpredictable fate of investment returns. You can exercise it any time you want before expiration. My favorite way is through conservative options strategies like selling puts, credit spreads, covered calls and a variety of other premium or income selling strategies. Your Practice. Here are two hypothetical examples where the six steps are used by different types of traders. There are many additional ways options can be used to conservatively protect portfolio positions and also to increase cash profits. Compare Accounts. Let's breakdown what each of these steps involves. Just think if you were lucky enough to start investing during those first few years of our latest bull market. Cash-Secured Puts Let's walk through each of these simple strategies.