The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. On today’s call, we’re going to talk about option strategies for small accounts. Again, this is a big topic that a lot of people have I guess challenges with, is choosing the right option strategies or the best option strategies for small accounts. I can tell you that I think the standard here is that it has to be for a small account, it has to be a defined risk strategy. Most of the time, if you’re trading under $25,000 which I consider to be a small account, then you want to start trading with defined-risk positions, meaning credit spreads, iron condors, iron butterflies. You can also trade debit spreads if you want to. That’s a directional option-buying strategy. But when we’re talking purely about option selling, it’s credit spreads, iron condors and iron butterflies which effectively are one in the same. They’re all basically cousins or related to one another. An iron condor is just two credit spreads. An iron butterfly is just two credit