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Forex Options Part 11: Covered Calls vs. Selling Puts |
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The most popular strategies for experienced FX options traders are selling options. It shifts more control to the trader and increases the probability of success. Of the common selling strategies used, covered options (covered calls and puts) are a standout because of the dual benefits of a hedge and potential profits. However, an erroneous assumption made by many traders is that you cannot get these benefits with just a short option. In fact, the risk profiles for a short put and a covered call are identical but there are some trade-offs with each strategy. In today's video we will walk through the relative advantages and weaknesses of the two strategies. If you need a refresher on covered options check out the archives. We are also pleased to tell you that our complete course on options trading will be released next week, so come back to check that out. Watch the video below, and congratulations, you have finished the Forex Options Essentials Course! Be sure to review the lessons often as you begin to implement these strategies.
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