Top 3 options trading strategies for beginners

While there are dozens of options trading strategies available, we’ve selected three strategies that we think are great starter strategies for beginner options traders. Additionally, one of the strategies is a great way for long-term stock investors to use options in their portfolios to reduce risk and potentially enhance the returns of passive investments.

Selling Put Spreads

Selling put spreads is a great starter strategy because the trade can be implemented with very little capital, has bullish market exposure (which most investors want), and has a high probability of profit.

Selling Iron Condors

Selling iron condors is the second beginner strategy discussed in the video. The iron condor is a great options trading strategy for beginners because it is a non-directional trade with limited risk.

The Covered Call

Covered calls are more capital intensive than the first two strategies, but are ideal for long-term investors who wish to use options to hedge their passive investments, with the potential to enhance returns during dull market periods.

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