Advanced Options
Trading Techniques

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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.

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.

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

Credit Spreads

Trading Options at Expiration

Iron Condors

Calendar Spreads


European-style Options

Commodities Options

Forex Option Trading

Weekly Options

Binary Options

The Safer Short Strangle

Options Trading 201

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.

Remember, you'll need a good broker to trade options effectively. Please check out Options House. Their tools are top notch and their commissions low:

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Real Money

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

After reading the review from Amazon, you'll want to order this book:

"Wow! I wish I had this book while I was in the business. I am sure I could have made more for my clients. Mr. Mullaney does a thorough job explaining the instruments, theory and strategies. Trading options is a viable strategy in current market environments. This should be on the shelf of every trader. "