5 Best Options Trading Strategy for Beginners

Best Options Trading Strategy for the beginners is a must needed guide. The quickest way to earn profits in stock is the options trading. Thus you can earn a huge profit within a quick time and you may lose money as the same way too. Here in this article I will guide you of the inse and outs of the options trading and how you can make Best Options Trading Strategy.

Best Options Trading Strategy

Options trading is a popular trading script among intraday traders. Traders who want a quick profit and has impatiently character can involved into the options trading. Options trading can be an exciting and lucrative venture for those willing to dive into the dynamic world of financial markets. To excel in options trading, it is essential to employ effective strategies that can help maximize profits while minimizing risks.

Understanding Options Trading

Before delving into the main topic let’s briefly understand the concept of Options Trading. Options are the financial derivatives that give the oppurtunities to the traders to buy or sell the underlying assests ( such as stocks, commodities or mutual funds or ETFs). The options might be of the indexes or the stocks. The option seller sets the price of the underlying asset and the buyers have to buy that asset in the same price. The options have a limited time of experiy. Some has weekly experiy and some has monthly experiy. You have to exucute your trade within that time frame. This flexibility offers traders unique opportunities to profit from market fluctuations and manage risk effectively.

Also, you can read: Best Dow Jones options trading strategy

Best Options Trading Strategy

Making an option trading strategy A well-defined options trading strategy is crucial to navigate the complexities of the market and make informed decisions. It provides structure, discipline and a systematic approach to trading. The most important in the options trading is the risk management. As it is a volatile market script so the risk management needs to be analyzed. Now let’s identify the Best Options Trading Strategy.

There are two best strategies for making any option trading strategy. The buy and selling of the options is the best way to earn profits. But there are more strategies for options trading.

Best Options Trading Strategy

1. Long Call Strategy

In options trading, the call option is anticipated to buy a derivative expecting the price might get higher. The difference of the selling price after the increased price and the buying price, is the profit earned by the trader. The call strategy specially followed when the trader expect the hike of the market movement.

Take an example of the option trading strategy to understand it better. If you invest in the US stock market index, such as the S&P 500, to rise in the coming weeks. When you purchase the call options on the index at a specific strike price. If the market moves in your favor, the value of the call option will increase, allowing you to sell it at a higher price and earn a profit.

2. Defensive Put Strategy

The put options is the protective and safeguard for the options traders. Purchasing put options to safeguard against potential losses in a stock position. The put option is anticipated when the trader expecting the market moves to downwards. When the trader buy the option they predict that the market will go down, then he will earn the profit from the difference between the buying price and the selling price.

Take an example of the option trading strategy to understand it better. Imagine you own shares of a tech company listed in the US stock market index, and you’re concerned about a potential market downturn. By purchasing put options on the stock, you can offset any decline in its value, as the put option will increase in value when the stock price falls.

3. Use Stop loss For Every Trade

The stop loss is the savior for every trader. I always recommend to every one. The most volatile script, the options is the most riskyest investing option. Some trader fall in to the trap then lolst their money. So the stop loss is the savior for the trader.

For an example: Suppose if you trade on the US market and buy the S&P 500 index atv a certain position. If the trade doesn’t go with your prediction then it will meet loss. So to prevent your self from the loss put the stop loss on your trade.

Best Options Trading Strategy

4. Straddle Strategy

When you buy an option within the same strike point on the same expiry date it is the straddle strategy. Here in this trading strategy, the trader tries to trade in quick succession. On the expiry day, the particular option moves in a single direction. The trader expects that the option will moves towards in a single direction, thus they buy the option according to their predicted direction wise.

For example: In times of high market volatility, uncertainty may prevail. By implementing a straddle strategy, you can benefit from significant price fluctuations. If the stock price moves significantly in either direction, one of the options will gain value, compensating for the loss on the other option. The best options trading strategy can be considered by this method.

5. Iron Condor Strategy

To understand the iron condor strategy for options trading strategy and get the aspects of the strategy you need the example for better undestanding. Here I will briefly describe the option trading strategy.

  • Let’s say the S&P 500 index is currently trading at 4,000 points, and you anticipate that it will remain range-bound between 3,900 and 4,100 for the next month.
  • You could implement an Iron Condor strategy by simultaneously selling a call option with a strike price of 4,100 and buying a call option with a strike price of 4,200. Additionally, you could sell a put option with a strike price of 3,900 and buy a put option with a strike price of 3,800.
  • If the index remains within this range until the options’ expiration, you can earn the maximum profit. However, if the index moves beyond the breakeven points, adjustments or closing the position might be necessary.

The above mentioned Best Options Trading Strategy can be implemented by the beginners in options trading. I have mentioned this from my 10 years of my trading experience. Before making any option trading strategy make sure you have fully learned the market and also analyze the market.

Key Words

Crafting the option trading strategy requires a deep understanding of the market. Among the various strategies and methods, the Iron Condor stands out as one of the best options trading strategies due to its risk management capabilities and adaptability to market conditions. By implementing the best options trading strategy there will be many risk management techniques that you need to acquire to increase your profits. Though after reading the article you hopefully you get some insights of it.

Ultimately, finding the best options trading strategy requires aligning your trading goals with your risk appetite and market analysis. So, seize the opportunities, manage the risks, and embark on your journey towards profitable options trading.

Note: The examples mentioned in this article are for illustrative purposes only and should not be considered as financial advice. Always consult with a professional financial advisor before making any investment decisions.


1. What is safest option strategy?

You can use any strategy, but the most important is the risk management. Options trading is always risky, so you need to be very cautious before you trade. But the Covered Call option can be considered as the safest option trading strategy.

2. How can I learn options trading fast?

There is no short cut for learning. When you want to trade on the stock market you need to learn the market properly. Other wise you will face loss. You can take advise or read books or watch videos of good teachers whom you trust.

3. Which option is riskier?

The selling options are risker. Because it needs money on the market. If the selling option doesn’t go with your trade you will lose all your money.

I am Mr. Arpan Dutta, from West Bengal, India, an investor in stocks and a financial advisor since last 10 years. I am very much interested in finance and every day I'm researching many financial topics. I have noticed that many common people can't figure out financial topics properly. So I have opened this website to help the people by writing articles on many financial, insurance, and stock market updates, financial advice, and also about the world economy, etc. I will post articles regularly on my website myfinanceadvices.com. So keep following my website. THANKING YOU.