Trading Options Strategies (part 1)

by David Jenyns on March 2, 2006

Trading Options Strategies (part 1)
Professional traders use different options strategies, they may use the term lean to refer to ones perception about the directional strength of the stock. When you own a stock and intend to hold it for a period of time, you are aware that you will probably be holding it while it goes up and while it goes down. This means that at any given moment in time, you might have a different opinion of the potential movement of that stock. Knowing this, there is a way to address your present level of confidence or lean for your different options strategies. You do this by your choice of which option you sell.

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