Options Trading Made Easy For All
Market Beating Returns • Conservative Strategies • Taught By Professional Traders
The Benefits of Option Selling
Safe and Consistent Double Digit Monthly Returns Are Possible…
- Safe and Consistent Double Digit Monthly Returns Are Possible…
- No matter if the markets move up, down, or sideways
- No matter how the economy is doing
- Even if you are new to trading
- Without watching the markets all day
- With as little as $5,000 in your account
So what exactly is Option Selling?
A stock option is a tool created to help investors and others hedge their investments.
A stock option is a tool created to help investors and others hedge their investments.
Options were actually created to act as insurance.
If you owned a large amount of stock, to protect it from losing value if the markets drop, you can buy a Put option.
If the stock drops in price, your stock will lose value but the Put will make money to offset your loss.
It’s a hedge. That is what is was designed for.
But then speculators got involved and started to buy options looking to take advantage of an option’s leverage.
You see, if you buy a Call option and a stock goes up, you can make 100% ROI or more literally in the same day.
And that is why the internet is littered with courses and newsletters that proclaim to teach you how to know what options to buy so you can make millions overnight.
But there is a problem – a huge problem.
In order for the option buyer to make any money, he has to be right on three things:
- Direction of the move on a stock (Up or down)
- When the move will occur (tomorrow, next week, next month, 3 months)
- How large the move will be (how many dollars the stock price will increase or decrease)
If the option buyer is wrong on any one of these three, even just a little bit, the trade will lose and he will lose the entire amount he paid for the option.
Why?
Because options expire.
They are like coupons that you have to pay for. They have an expiration date.
If you do not use your coupon before the expiration date, you lose whatever you paid for the coupon.
It is no wonder, that most options expire worthless.
Buying options is considered very, very, risky.
Selling options is the other side of the coin.
We sell options to the speculators.
The options we sell allows us to have a very high probability of winning (we only sell options that most likely will expire)
We are like the casino and option buyers are like the gamblers.
The house, that’s us, always has the edge.
Once in a while a gambler wins, but over the long run, the casino always comes out ahead.
To learn more about how option selling works, I have written a 9 lesson course...
CONTACT
help@optiongenius.com