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How To Master The Sky Trading Strategy In Minutes Or Less

The Sky Trading Strategy is a simple yet effective trading strategy that can be used to profit from both trending and sideways markets. The strategy is based on the idea of using options to profit from time decay.

What is time decay?

Time decay is the gradual decrease in the value of an option as it gets closer to expiration. This is because the option has less time to become profitable. For example, if you buy a call option with a 30-day expiration, the value of the option will decrease as the 30 days get closer.

How does the Sky Trading Strategy work?

The Sky Trading Strategy involves selling a strangle, which is a combination of a short call and a short put. The short call gives the buyer the right to buy the underlying asset at a certain price (the strike price) on or before the expiration date. The short put gives the buyer the right to sell the underlying asset at a certain price (the strike price) on or before the expiration date.

When you sell a strangle, you are essentially betting that the underlying asset will not move too much in either direction before expiration. If the underlying asset does not move much, the time decay will cause the value of the strangle to decrease. This is where you make your profit.

How to use the Sky Trading Strategy

The Sky Trading Strategy is a simple strategy to use. Here are the steps involved:

  1. Choose an underlying asset that you think is likely to trade sideways.
  2. Choose strike prices that are far enough out of the money so that the options are relatively cheap.
  3. Sell a strangle with a short call and a short put.
  4. Monitor the position and close it if the underlying asset moves too much in either direction.

How to master the Sky Trading Strategy

The Sky Trading Strategy is a simple strategy, but it can be difficult to master. Here are some tips on how to master the strategy:

  • Use a trading simulator to practice the strategy before you use real money.
  • Start with small positions and gradually increase your size as you get more experience.
  • Be patient and don't expect to make a lot of money every trade.
  • Use stop losses to protect your profits.

Conclusion

The Sky Trading Strategy is a simple yet effective trading strategy that can be used to profit from both trending and sideways markets. The strategy is based on the idea of using options to profit from time decay. If you are looking for a simple and low-risk trading strategy, the Sky Trading Strategy is a good option to consider.

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