Introduction - Trade Stock Options
In a volatile stock market, or even in a market that is flowing quietly and calmly, there are many reasons to trade stock options.
The “flash-crash” markets , the volatility, the unexpected economic news reports and continuous data, the bull-runs, can all be beneficial to the investor if he/she so desires it.
There is a rule when trading options known as the ‘rule of opposites’ where if one thing isn’t true, then the opposite must be true. Thus, we can say that when options are reducing in time to expiry (increasing time decay), it is a good time for selling options and bad for buying options, the closer you get to the expiry time.
You can avoid these stock market frustrations and actually set yourself up to make money. I'm sure you understand this will not happen by you sitting in cash vehicles that guarantee you safety but pay you no return. You are being "rewarded" for the risk you are taking, and that reward is zero. But at the same time I'm not suggesting that your only alternative is putting your money in the market. What I'm in fact suggesting is that you commit a relatively modest portion of your capital to STRATEGIES designed to EXTRACT MONEY from the market, regardless of direction, or even if there is NO direction. And the only investment vehicle that can accomplish this for you is options.
Reasons to Trade Stock Options:-
• You can purchase a stock option for a fraction of the cost of buying the underlying stock...which means you can start trading stock options with a much smaller amount of money.
• You can make money when you trade stock options in any type of market…whether it is UP, DOWN or SIDEWAYS …. year-in-year-out. Even if a stock, you have purchased options on, goes in a direction opposite to your views, then money can still be made with correct manipulation.
• You can profit in all market environments by trading multiple option strategies on highly liquid exchange-traded funds on broad-market indexes, like the QQQQ.
• Your profit potential is UNLIMITED ….depending on your trading outlook from conservatism to greed scale.
• You can profit from the strong tendency of the market to trade in well-defined ranges most of the time with a carefully selected option premium selling program.
• You can profit from the huge volatility around events like quarterly earnings reports.
• You can profit by buying call options on stocks that are in long-term up trends, at much lower dollar risk than buying the stock.
• You can profit from market volatility regardless of the direction of the price movement.
• You can profit from buying calls on stocks that outperform, and at the same time buying puts on stocks that underperform their industry peers.
Your risk is ALWAYS LIMITED to the small amount you invest...and the amount per investment needs to be considered, before the investment, according to your risk scale and the amount of capital available.
You can make big money even if you have never traded options before, particularly if you become a member of S.O.M.E. (Stock Options Made Easy), where all the recommendations are made for you if you wish to follow accordingly.
You'll be able to still profit when you trade stock options IN SPITE OF interest rate fluctuations, inflation, deflation, or any political considerations, or even because of these factors. The more volatile a stock becomes, the larger the profit that can be expected from this options investment.
1. You can achieve huge leveraged gains buying options during expiration week, when premiums are extremely low. And now, with the new Weekly Options, there is an expiration week every week.
2. The calls in your options portfolio will allow you to achieve big leveraged gains if the market catches most investors by surprise and rallies through year-end.
3. The puts in your options portfolio will protect you against
"flash crashes" and other disruptive market events and even allow you to profit in these situations.
4. You can still benefit from the unlimited profit potential of option buying yet limit your loss from any trade to 20-30%.
5. A consistent monthly cash flow when you trade stock options is possible - EVEN IF YOU'VE NEVER TRADED STOCK OPTIONS BEFORE! This is possible by following recommendations from S.O.M.E.
Options are one of the most versatile trading instruments ever invented. They provide a high-leverage approach to trading that can significantly limit the overall risk of a trade, especially when combined with stock or futures. As a result, understanding how to develop profitable strategies using options can be extremely rewarding. The key when you trade stock options is to develop an appreciation about how this investment vehicles work, what risks are involved, and the vast reward potential that can be unleashed with well-conceived and time-tested trading strategies.
The Great Thing about (Stock) Options… is that once again you will totally control your downside risk. So, even when you experience a losing trade, your loss will be strictly limited. You will draw the line on losses, in advance. It's a necessary built-in strategy when you trade stock options.
In fact, when you combine the controlled risk of option trading with the combined personal recommendations and specific trading strategies from S.O.M.E., you will see exactly why options can be far safer and more conservative than the risky emotional way most people invest in stocks, bonds and mutual funds!
The opportunity is there for all investors and traders to make the most of the stock market by looking to the options trade for the profitable opportunities. Now is the time to take matters into your own hands and move forward!