The “Blackhole” Of Options Strategies
Options Investing Hub ⮞ Options Basics ⮞ The “Blackhole” Of Options Strategies
6 RESOURCES
⮞ Introduction To Options
⮞ The "Blackhole" Of Options Strategies
⮞ The 2 Core Option Strategies For Investors
⮞ Time Decay Of An Option
⮞ What Determines Option Pricing
⮞ Risk Profile Graph Of Option
The "Blackhole" Of Options Strategies
Options tend to get a bad name because of the misunderstanding people have with options.
It is not uncommon to hear things like:
"Stay away from options, they are too risky - it is much safer to invest in stocks."
"Options are too complicated for me, I rather stick to stocks"
Well, who could blame them for having such opinions - because options can get very complex.
Remember that I shared with you the four basic strategies of options.
Also recall that an option can be:
- A Call or Put option with different
- Strike Price
- Date To Expiry
This also means that I can mix and match the different options and it becomes another option strategy.
Watch this video to understand what I mean.
There are many gurus out there who can tell you all the fanciful option strategies such as:
- Straddle
- Strangle
- Iron Condor
- Iron Butterfly
- Reverse Iron Condor
- Calendar Spreads
- Many more.
This is what I call the blackhole of options - because there are simply so many different strategies out there.
And I'm not saying that these strategies are bad.
But I believe that complexity is the enemy of execution.
If you want to use such fanciful strategies - it becomes very hard for you to implement because you get easily confused. And that is the last thing that I want for my readers.
After all, implementation is everything.
Because of that, I decided to write this Options Investing Hub and I only focus on two core strategies as an investor.
So don't worry if you don't know all the fanciful strategies - you just need to know a few strategy that works for you.
And in my case, these are the two strategies that worked out really well for me.
See you in the next section.
Note: One of the biggest reasons why the options hub was built as there were too many people who get burnt because of the lack of knowledge of how options works and its risks involved. This resource hub aims to equip beginner investors with the knowledge of options and how they can manage their risks when investing with options.