Strangle Options Strategy

The only explanation which would seem acceptable is no one has shown you how to perform this marvel of printing money before, so you are a bit unsure of how to go about doing so!If this is your situation, then you are excused…But if not, you are truly missing out. Even if you are in the first situation, you are still missing out!No matter how long have you been an options trader, you will eventually find out that there is quite a bit of uncertainty involved with buying options.The Chicago Mercantile Exchange estimates over 80% of all options sold expire worthless. So why aren’t you selling them instead of buying them?An option is considered a “wasting asset.” Time value erodes as each day passes, accelerating as the option’s expiration nears. This is referred to as “time decay”.If the underlying contract does not move far enough by expiration, the option will have no value left and expire worthless and the option seller will keep the premium.When selling (or writing) an option, we get paid the premium up-front and we take advantage of “time decay”.However, it is simply not enough to know that to selling options generates significant premiums, you must also have a well throughout strategy for performing this. Along with this, you will also need to make corrections for when the market goes out of your favor.We have solved this by only selling straddles. You seasoned guys know what a straddle is. It is simply having a neutral outlook on the market, and trading it accordingly. By selling straddles, we are essentially playing both sides of the market. Stocks go up, down or stay the same. So we hedge our bets in both directions and hope that the stock remains flat.Our view stems from the fact that, a directional move will increase one side of the option play, and decrease the other side. So even if you may loose money in one position, we are gaining money in another. and by staying flat, both sides simply reduce to zero.Since we only sell out of the money positions, unless the stock breaks through the strike price, at expiration, best case scenario is we make money on both option legs. Worst case scenario is we loose on one leg, and we gain on the other, coming out with a wash.Or the more likely scenario, is both option legs are reduced to a level which we are happy to take profits.However, even though we believe selling options can potentially put the odds of success in your favor, it still requires good, solid market analysis. That’s how we, as seasoned traders arrive at our option picks!After trading options for many years with so much success, we see no reason to buy options. We have discovered, when options are sold correctly and carefully, they can generate a higher percentage return than any other option or stock trading strategy.Novice traders benefit the most from our alerts because they soon realize the difference is, selling options gives you a larger margin for error. You don’t have to be exact, only close.OPTIONXSPREADS is a group of ex-stockbrokers and investors who have developed this site to allow the ordinary investor to trade along with the pros, and have a chance to double, tripple and quadruple their investment dollar. And all you have to do is follow our trades and make money!Even if you do not follow our trades, realize that you should incorporate option selling into your trading strategy, to take advantage of the favorable odds! To see how we provide tremendous gains to our members every month, visit our website: www.optionxspreads.com