Trading Weekly Options-Basic Terms to Creating Your Income - PowerPoint PPT Presentation

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Trading Weekly Options-Basic Terms to Creating Your Income

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Once you get the hang of weeklies, you can also create a monthly income as well as a weekly income. A good way of creating this kind of income is by selling an option, thereby gathering a premium. Another one will be bought for protection. – PowerPoint PPT presentation

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Title: Trading Weekly Options-Basic Terms to Creating Your Income


1
Trading Weekly Options-Basic Terms to Creating
Your Income
The most important terms when it comes to weekly
option trading are https//www.integraoption.com/
2
  • Once you get the hang of weeklies, you can also
    create a monthly income as well as a weekly
    income. A good way of creating this kind of
    income is by selling an option, thereby gathering
    a premium. Another one will be bought for
    protection.
  • They are most commonly known to be called as
    credit spreads.
  • You can do credit spreads by doing calls and
    puts. You can also use both to instruct an Iron
    Condor trade as well. There is also some other
    income strategies and it is possible that they
    might work well too.
  • You can get to know this kind of strategies once
    you go to a higher level. Until then, you need to
    make sure that you are understanding the current
    strategies well.

3
www.integraoption.com
  • The call option is used when the investor is
    ready to buy the underlying asset.
  • The put option is used when the investor wants to
    sell the underlying asset.
  • The contract will end when the asset expires.
    That is why it is better to keep track of time.
  • When some kind of option has an inherent value it
    is called in-the-money. The call option is
    in-the-money if the price of the underlying asset
    is higher than the option price. The put is
    in-the-money if the price of the underlying asset
    is less than the option price.

4
  • An option has no inherent value, it is considered
    to be out-of-the-money. The call option is
    out-of-the-money if the price of the trade is
    less than the strike price. The put option is
    out-of-the-money when the trading price is higher
    than the strike price.
  • The best terms of a weekly options trade are
    option writing. The seller of the option is
    considered to be the option writer. This is said
    to be way one of creating an income. When we sell
    an option, we collect a specific amount of money
    for this kind of transaction.
  • The option buyer is known the be the guy that
    gains the rights to buy the transfer option.

5
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