I recognize that not everyone who visits here trades exclusively for an investment club.  Some of you trade individual accounts.  Thus, I thought I'd share a list of my favorite option strategies.

When mentioning this methods, the emphasis is on making money and managing risk.

The following are the methods I recommend for investors who already understand how options work.  For rookies, I recommend the same strategies, but it's important not to begin trading any of them without first gaining a good understanding of how each of these strategies works and what can be accomplished when you adopt them.

• Covered call writing

• Cash-secured naked put selling

• Collars

• Credit and debit spreads

• Iron condors

• Diagonal, and double diagonal, spreads

For readers anxious to learn much more about these methods more quickly, The Rookie's Guide to Options teaches (in detail) how to use each of these methods. Otherwise, information is available online and free webinars are available from the CBOE and OIC (Options Industry Council).

One caveat worth mentioning:  The first two strategies on the list are very popular and used by many investors. The warning is to be aware that these are bullish strategies and can incur significant losses when markets tumble.

Each of the other four strategies has a built in loss maximizer.  The reason is that these methods buy one option for every option sold.  That reduces profit potential, but it is much less risky because it limits losses.

Good trading

Mark D Wolfinger

Expiring Monthly: The Option Traders Journal
http://www.expiringmonthly.com/