money-hacks on Nostr: Trading options has recently become a new tool in my investment portfolio Options get ...
Trading options has recently become a new tool in my investment portfolio
Options get a lot of negative press due to the high risks many gambler investors take
If you haven’t looked into options yet - let me introduce you to the WHEEL STRATEGY
1. WHAT IS WHEEL STRATEGY?
Options trading strategy that involves buying and selling options contracts on a particular underlying asset with the goal of generating income
In the process you can acquire shares of the asset at a lower cost basis
This is fairly low risk strategy
2. INCOME GENERATION
The wheel strategy is designed to generate income by selling options contracts
By repeatedly selling covered calls and puts, traders can earn a steady stream of premium income
3. REDUCED RISK
Because the wheel strategy involves both buying and selling options contracts, it can help reduce risk compared to other trading strategies
Traders can limit their potential losses by holding the underlying asset, while also benefiting from potential price rises
4. FLEXIBILITY
The wheel strategy is flexible and can be adapted to different market conditions
Traders can adjust their positions by rolling their options contracts forward, changing the strike price or expiration date, or closing out their positions early
5. LONG-TERM GROWTH POTENTIAL
The wheel strategy can also offer long-term growth potential by allowing traders to accumulate shares of the underlying asset at a lower cost basis over time
This can help generate additional income through dividends or capital gains
6. HIGH RETURNS
Wheel strategy can generate both asset value appreciation and dividend income over time
The investor can expect returns of over 20% per year when all income streams are combined
Options get a lot of negative press due to the high risks many gambler investors take
If you haven’t looked into options yet - let me introduce you to the WHEEL STRATEGY
1. WHAT IS WHEEL STRATEGY?
Options trading strategy that involves buying and selling options contracts on a particular underlying asset with the goal of generating income
In the process you can acquire shares of the asset at a lower cost basis
This is fairly low risk strategy
2. INCOME GENERATION
The wheel strategy is designed to generate income by selling options contracts
By repeatedly selling covered calls and puts, traders can earn a steady stream of premium income
3. REDUCED RISK
Because the wheel strategy involves both buying and selling options contracts, it can help reduce risk compared to other trading strategies
Traders can limit their potential losses by holding the underlying asset, while also benefiting from potential price rises
4. FLEXIBILITY
The wheel strategy is flexible and can be adapted to different market conditions
Traders can adjust their positions by rolling their options contracts forward, changing the strike price or expiration date, or closing out their positions early
5. LONG-TERM GROWTH POTENTIAL
The wheel strategy can also offer long-term growth potential by allowing traders to accumulate shares of the underlying asset at a lower cost basis over time
This can help generate additional income through dividends or capital gains
6. HIGH RETURNS
Wheel strategy can generate both asset value appreciation and dividend income over time
The investor can expect returns of over 20% per year when all income streams are combined