Investments with financial options, in many cases, are intended for investors who have advanced knowledge. However, operating with options is one of the topics that any administrative or economic career can understand, which is why many investors use it as a financial instrument that they consider completely effective to operate.
In this sense, you will need to continue reading this article, as we will look at the best binary options strategy to start investing with popular options.
- Protective Put-type Strategy
This is responsible for working in a certain long-term position in an asset. The ultimate goal is for the investor to truly protect themselves from declines in the value of the underlying price.
These types of strategies work to maintain a floor that allows truly unlimited profits with potential increases in the value of the lower asset while allowing the asset price to remain below the cost of the exercise, which would be exercised with the put. They are ideally used as insurance that goes against assets in the face of unexpected movements that happen over time.
- Bull Call Spread
This strategy is usually included in vertical spreads, in which the investor simultaneously sells and buys two call options on the same asset that has the same expiration date. The only thing different is the exercise value.
These are used when the investor expects very moderate increases in lower assets. In these strategies, the loss and the profit are not limited, since they depend entirely on the distance in which the prices of the exercise are placed or also known as spreads.
- Bear Put Spread Type Strategy
In this, investors buy put options and sell an exact number of put options at much lower exercise costs. It is often used when investors expect the lower asset price to suffer unexpected drops.
The best and most significant benefit is earned when there are differences in costs, and when the net price of each option is less than what has been established.