Most Profitable Trading Strategies


3. Options Trading

Financial Derivatives have become accessible to retail investors in recent years. The most common traded financial derivative is options. On top of your current stock trading strategies, these financial derivatives generate a profit and reduce your risk.

An option trade called covered calls is one strategy many retail investors employ. Covered calls are a great way to collect extra monthly profits as you sell insurance essentially while holding on to your current stock investments.

Trading options is an excellent way of generating additional income, as you are picking up a premium for holding the stock, and you can simply buy back the stock after the call option has been exercised.