July 21, 2017

What is an Option? More Importantly, How Do I Trade Options?

What is an option you ask? More importantly, how do I use options to enhance my portfolio returns.

The second question is by far the more difficult question to answer because it requires a personal look into how you see yourself as an investor. One thing I I can guarantee – there is an option strategy that exists that you will cater to your needs. Whether looking for a pure hedge to your current stock positions, a super aggressive weekly call or put options or somewhere in the middle, you should be using options to assist your investment needs. If you don’t you are making a huge mistake.

Yes, I agree – there is a lot of bulls$%^ options services out there touting outlandish gains. 500% profits in 2 days, 912% profits in one day, etc. You know what I am talking about it. Don’t believe them. Yes, you can make a quick winner on occasion, but it is the equivalent of hitting a single number on a roulette table – it is possible, but more importantly, it is not sustainable. If that is what you are looking for then you are on the wrong website.

My options strategies are not “get rich quick” strategies, rather sound options strategies based on three basic ideas – patience, position-sizing, and long-term performance.

After speaking with hundreds of investors, I discovered that the majority of investors were not looking for a ‘get rich quick’ scheme, or a foolproof method of trading options (we all know there isn’t one). What they wanted was a service with established capital preservation goals and historically proven long-term successful investment strategies. They wanted options strategies that would produce consistent, modest gains month after month, year after year. They also wanted to know that unnecessary risks were not being taken, but rather a methodical, tested set of rules were being utilized which would produce long-term gains.

My options strategies were born from the collection of ideas mentioned above. After trading almost every known options strategy, I fulfilled the requests of the investors and traders I spoke with and have identified several historically proven stock options strategies for long-term success in bull and bear markets. Again, all of my options trading strategies are based on three simple principles: patience, position-sizing, and a focus on long-term performance.

I encourage you to learn more about my stock options strategies by joining my FREE weekly options newsletter. Every day in my daily blog I will provide an in-depth look at my trading strategies, including specific trading guidelines.  Diversify your portfolio, better yet, educate yourself with one of my options strategies.

It might not be the options strategy for you, but for a Free 30-day trial why not give it a try.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Options Indicator – Overbought – Oversold

None of the ETFs I follow in the High-Probability, Mean-Reversion Indicator have moved into a short-term extreme. I will be back with the indicator chart tomorrow. Stay tuned.

You can see all of the performance results for the High-Probability, Mean-Reversion strategy here.

Daily Options Links of Interest

Have a wonderful evening!