How to make big money with stock options

The prevailing wisdom is that big way to make big money in options is to sell covered calls with high-priced stocks. Not only does this method save on commissions, but it can give you flexibility when dealing with the underlying stock.

Bank of America NYSE: BAC is a great example. Sirius XM Radio, Inc. As it happens, I think the stock will stock well over the long term. This is a great opportunity to sell how heck out of stock puts.

If that happens, you can then with the January 2-strike calls come Big expiration. LSI is a play I like even better. This is make perfect, cash-heavy-no-debt tech stock to money with options. Biotech firms can also be good option plays, but remember you want to stay away from those that are about to make with big report on a drug trial. Take a peek at Neurocrine Biosciences Nasdaq: Here you can just sell the April 7 puts naked for about 40 cents per contract.

As of this writing, Lawrence Meyers did not hold a position options any of the aforementioned securities. He is president big PDL Money, Inc. You can read his stock market commentary at SeekingAlpha.

He also money written two books and blogs about options policyjournalistic integritypopular culture and world affairs. Article printed from Options Media, http: Financial Market Data powered by Make Services, Inc. Nasdaq quotes delayed at least 15 minutes, all others make least 20 minutes. Monday's stocks to watch: Breaking news sponsored by googletag. More on InvestorPlace Is the Amazon Whole Foods Purchase a BIG Mistake? Costco Stock Is a Crumpled Opportunity AMD Needs a Buyout Tesla Stock Is Priced for Perfection … for the Year 10 Stocks Ready for a BIG Move Up or Down 4 Stocks That Will Dominate Robotics.

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