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Hari Swaminathan
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OptionTiger.com is founded by Hari Swaminathan, an entrepreneur, everyday person and a self-taught Options trader for over 5 years. Hari also writes the blog at OptionTiger.com, an insightful commentary of the most important issues in macroeconomics, investing, trading, Option strategies, Index... More
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  • Is There A Holy Grail Of Options Trading Strategies 0 comments
    May 16, 2013 6:23 AM | about stocks: ETF

    This post was originally written on April 24, 2013 at http://www.optiontiger.com/holy-grail-of-options-trading-strategies/

    Is there a Holy Grail of Options trading

    The-Global-Money-MachineEvery Options trading strategy is a compromise and has its pluses and minuses. To get something, you have to give up something else in return. So is there truly a Holy grail of Options trading strategies ? Let's first look at the repertoire of wonderful strategies available to all Options traders, and a review of these strategies' pluses and minuses before we answer that question.

    Options Strategies

    Single Options - Inexpensive, but if you're wrong about direction, you lose

    Option spreads - Probably the most sound Options strategy, but limits profits

    Credit spreads - Ideal income strategies, but the reward to risk is low. Faces large drawdowns if the position goes against you.

    Iron condors - Great strategy, but same issues as in credit spreads

    Calendars and Time spreads - Profit zone is not great. Also cumbersome to adjust if things go wrong

    Straddles and strangles - Great volatility strategies, but the massive time decay and / or the Volatility crush can make a grown man cry

    Weekly Options - You better skip your lunch break or you may not recognize your position when you get back.

    The point is - there are great Options strategies, but they all have minuses.

    But what if you could tackle the minuses of a strategy by using not just one of these strategies , but dig deeper into the Options trading playbook and come up with a sophisticated strategy combo to tackle the problem ? Now, this certainly raises the possibilities for the existence of the Holy grail. And this is exactly what this is all about.

    If you're interested to learn more, please register below…

    Register with your Facebook account, get a free course worth $75

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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