Advanced Options Trading TechniquesSo 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 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.
Credit Spreads
Keep in mind that most of these techniques can be riskier than the simple ones highlighted elsewhere on this site. They also 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. For a very interesting new book that addresses Advanced Options Techniques have a look at:
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