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27 Mar 2016

When the marketplace is stable, options can be a big winner for several option trading strategies. One is a short straddle. A brief position like this is comprised of a brief call and a brief put option. straddles can earn the investor premium income right away. To fully understand the dynamics of a straddle, it is best to understand the basic risks and rewards with selling options short.iron condor

Short Call

An investor who sells short a phone option is looking to really make the premium income on the sale. The options trader is hoping the marketplace declines or stays exactly the same - thus keeping the premium earned without any obligation to the call holder. If the marketplace rises, and the stock itself isn't owned by the options...