http://www.options-trading-education.com/24425/how-to-profit-from-options-trading/ How to Profit from Options Trading Is one thing to learn options trading about which we wrote last week but it is another to learn how to profit from options trading. Options trading is a way to seek profits or limit losses on underlying stocks or futures on commodities or even interest rates. Successful traders learn to predict where prices will go in the near, medium or distant future and trade accordingly. Alternatively day traders use a technical approach that simply ready market sentiment and trade on much shorter time frame. A successful options trading strategy will take into account both fundamentals and technical factors. We wrote years ago about picking a successful strategy. Successful options trading requires a strategy. What are the components of a successful options trading strategy? The Yen appears to be in trouble after the Bank of Japan Governor, Masaaki Shirakawa, spoke in a Wall Street Journal interview about disruptions in Japanese industrial production. Developing a successful options trading strategy for the Yen will require traders to keep up with developments on the ground in Japan and market reaction throughout the Forex trading world. The threat of another full civil war looms in Syria as society rises en masse to protest generations of repression. The serious currency trader will not be interested in trading the Syrian pound but in trading British Pounds, Swiss francs, and Euros as another society threatens to descend into chaos on Europe’s flank. A successful options trading strategy for the European currencies will take into account possible disruptions in oil supplies from violence in the Middle East, disruption in shipping if chaos spreads, and the cost of potential military intervention such as in Libya. How to trade options successfully in this evolving situation is, as always, to keep up with the news, read market sentiment with continual technical analysis, and dig deeper for the facts of the matter that will drive the situation to its eventual conclusion. How to profit from options trading can be to learn the fundamentals that drive prices of stocks and commodities and trade options accordingly. If prices are very volatile traders often use approaches such as the long straddle in which one buys calls and puts on the same stock with the same expiration date and same strike price.