Expanding the Strategies
Options trading is by no means a limited range of strategies. Experienced traders are exposed to a rich variation in strategies possibilities. This is true for installment strategies, at times to an even greater degree than a more simplified methodology (i.e. covered call writing or speculation in long options). These strategies are best applied to hedge risk and to reduce exposure to losses, either in options positions or in related equities. Based on price patterns of underlying securities, many expansions are designed to exploit expected price direction as well as providing hedges against undesired directional moves.