What is the best options trade

My favorite trades are covered calls and collar trades.
They provide stable returns with low risk.

 

Learn it today, be an ET expert by tomorrow

 

I like selling options that are priced above fair value.

 

What's a collar trade

 

Collar:

Long 100 shares
Long one call
Short one put

Options DO NOT have same expiration and strike.

see link for more details

Mark
http://tinyurl.com/lwxo4x

 

Mark,

I'm sure it was a brain fart, but that's not a collar. In a collar with a long stock you short the call and buy the put.

 

Wow thats a very bullish position

 

I usually start the trade with a covered call (long stock, short call).

I'll add the long put (turning it in to a collar trade) if the stock goes very bearish. Usually if it breaks a support line.

Regards,
Chad

 

Let me ask the OP an equally silly question ... what's the best stock?

 

Dont you just love it when that pitch comes in just right and you get that easy hit?

Kaazzaam!