Bullish Options Trading Strategies

[fa_icon icon=”arrow-circle-o-right” size=”medium” circle=”yes” background_color=”” color=”” id=”” inline=”” class=”” animation=””]When you are “bullish” a stock, that means it is your opinion that the stock is going to go up in price. While you could simply buy the stock, it is often more expensive than using a bullish options trading strategy. You can have a lot more leverage. Translation: Get more potential reward with spending less money using options than you can by simply buying the stock. There are many options strategies to apply when you have a bullish sentiment.

One option strategy you can use, is to simply buy a call on the stock above where it is currently trading. If the stock trades higher and goes through the call strike, by more than you paid in premium, you will be profitable. You could also use a call vertical. A Call Vertical is when you buy a call at a lower strike, then you sell a call at a strike two or more higher. By doing this, you still get the advantage when the price goes through the strike but you decrease your cost by selling a further out call. Of course, the further out call will cap your gains at the strike you sold it, but this is a simple method to reduce the cost/risk whenever you buy a call vertical.

When and how you buy these different option strategies, and how you manage them is what we teach at Sheridan Mentoring every day. With our options education you can learn to take your sentiments, whether bullish or bearish, and know how you can use options and the leverage they afford to your best advantage.

Mark Fenton, Senior Options Mentor

Try our Bullish Strategies Class, and view a Free video where Dan talks about how to generate income in a Bull Market! Click Here!