Income strategy introduction

With income strategy we can generate profit on regular basis, buy combining buy or sell. This strategy is done by selling option either by selling calls or selling puts, and buying another option to protect the other option. This strategy is usually short-term strategy. The longer the time, the riskier it is. When we are writing option, the longer the time, the higher the probalility for the option to go against us. You can also collect income when the underlying (stock) does not move at all. There are numerous income strategy like:

• covered call
• vertical spread
• horizontal spread
• diagonal spread
• calender spread

Detail explanation will be covered in other article.