Advanced Options
Trading Techniques

So far we have looked at very safe methods for using options to create an additional stream of income. We've stayed away from Advanced Options Trading Techniques.

The world of options trading, however, presents us with many..well..options.


We suggested that cash-secured puts and covered calls, especially when using ETF's and solid dividend-paying companies as the underlying, can make for some very safe and profitable trades, especially if the strike price sold is far out of the money.

  •  As you continue to mentor yourself, you will no doubt become aware that there are other ways to use options, indeed other instruments besides stocks and ETF's to consider. And it is true, options are so versatile that there are many other techniques that are used to generate income. The following links will introduce you to some of these strategies. I include them here as a jumping off point for your continued education and income-harnessing potential.

The Winning Trade System - Options Trading Strategies For Indexes, ETF, Stocks - Small Frequent Wins and Ratio Trading - Professional Trader Thinking, Calls and Puts, The Greeks, Technical Analysis - Video Training Course From 26 Year Veteran Trader - Over 20 Hours of Video

I would recommend that you do not jump into these right away if you are new to options. Take some time to make some profitable cash-secured put trades and a few successful covered calls. But, by no means stop learning. Some of these advanced options trading techniques may resonate with your style and personality to such a degree that they become your number one money maker!

  • Also, keep in mind that most of these techniques can be riskier than the simple ones highlighted elsewhere on this site. Some of these will require you to establish margin privileges with your online options broker. You should consider these strategies after you are successful with the simpler ones. And please paper-trade them to start.
  • Nonetheless, adding some of these advanced options trading techniques to your income-producing arsenal can be quite lucrative. Depending on your financial situation, personal goals and trading acumen, one or more of these may become your principal rout to an additional income stream.

As you can now appreciate, options are very versatile, and you can design a program that fits you like a glove.

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"It's never too late to learn." – Malcolm Forbes

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