Trading options on forts strategies

How To Trade Options On Robinhood: A Never Lose Strategy!

Find similarities and differences between Short Put and Covered Call strategies. Find the best options trading strategy for your trading needs. Short Put Vs Covered Call Covered Call About Strategy A short put is another Bullish trading strategy wherein your view is that the price of an underlying will not move below a certain level.

The strategy involves entering into a single position of selling a Put Option. It has low profit potential and is exposed to unlimited risk. A short put strategy involves selling a Put Option only.

The premium received will be the maximum profit you can earn from this trade.

However, if the price of the underlying moves below then you will incur unlimited losses. A Covered Call is a basic option trading strategy frequently used by traders to protect their huge share holdings.

The Call Option would not get exercised unless the stock price increases. Till then you will earn the Premium. This a unlimited risk and limited reward strategy.

Let's assume you own TCS Shares and your view is that its price will rise in the near future. You will receive premium amount for selling the Call option and the premium is your income. Market View.

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