Selling options changed my whole investment and trading strategy! Maintaining a small account, I was all this while buying stock and selling stock a few months down the road making single and low double digit gains.
Having explored options, I have been making gains on a weekly and monthly basis in high double digit gains and triple digit gains.
My favourite option strategy is selling put and bullish vertical put spread.
1) what to buy?
Things I look out for when choosing an option trade is to trade on good and stable companies that I don't mind owning if I get assigned the stock which is also good news as that means I am buying a stock I like at lower price
2) When to buy?
I buy when a stock has dropped significantly or dropped to a support level
3) How long to buy
My favourite time frame is around 1 month as it gives the stock time to grow.
The best part about selling put is that I am being paid to wait.
Final note to always monitor the trade if I don't actually want to own the stock. Once the price reaches strike price, I would look to cut loss or exit at best price.
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