Options

Risk management in an option selling strategy

The most important part of any kind of trading plan is proper risk management. This is the area where most traders fail and end up wiping out their accounts. In this post I’ll outline the components of a good risk management strategy and use the option selling strategy I’ve discussed before (here and here) as an example. Actually, risk management…

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Dividends, Portfolio

Option selling as an income strategy

I’ve covered one of my alternative investment strategies for retirement portfolios already, in my post on structured products. Today, I’ll introduce the primary strategy I use to generate income from my cash balance – option selling. Cash is an important part of any asset allocation. It allows an investor to take advantage of opportunities in stocks when markets pullback and…

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