(6) Simultaneously Buy Call & Put Options At Same Strike Price In Volatile Markets
It is one of the most guaranteed ways to make money from stock markets with no risk. Stock markets are known to be highly volatile in nature.
This volatility can get a big boost during certain events such corporate results, political uncertainty, economic crisis, strong economic measures, announcements of industrial data & inflation rate, & many more.
A given script can show sudden spike or crash during this time. Sometimes, you can successfully give a guarantee of a big move soon.
However, you might be unable to predict the right direction of the move. In such situation, you can buy call & put option simultaneously at the same strike price to generate wealth.
For example, a stock is trading around $100 before the outcome of a special event. You can buy a call & put option of the same strike price i.e. $100.
If your stock shows big price movement then either your call or put will be in profit. You just need to cut your positions as soon as your target price is achieved.
Thus, you can easily earn money in a given script with minimum risk & without efforts.
[Read Also: 10 Wonderful Option Trading Strategies For Beginners]
(7) Hedge Your Future Position With Option At No Extra Premium
It is one of the most unbeatable ways to make money from stock markets with no risk. Options can be used to hedge your positions. This can minimize your risk of losing money in an adverse market condition.
You can make your position in Future of a given script in the most probable direction. Now, hedge your position with in-the-money option with no extra premium.
If the stock moves as per your expected direction then you can generate money after crossing strike price. For example, stock A is trading at $100. You have purchased one lot of stock A in Future segment.
Simultaneously, you have also purchased one lot of in-the-money put of strike price $110. Now, you can easily earn money without risk if the stock reaches above $110 before expiry.
Similarly, if you expect stock A to fall below $90 then make sell position in Future segment. Simultaneously, you also have to buy in-the-money one call option of strike price $90.
Now, you can easily earn money without risk if the stock reaches below $90 before expiry.
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