You’ve heard about option trading and you believe it could be right for your portfolio and investing style. But every time you try to have a serious conversation about Option trading, you get a barrage of idiotic comments ranging from:
“You’ll lose all your money trading options”, or “Options are too risky for you”, or some such nonsense. And, if you survive their harangue and ask them, if they have ever traded options, the most common answer is, “Well, no. I’ve never traded options. My adviser doesn’t believe in options so I don’t believe in them either.
Well, here is a little secret –
Options are NOT too risky
In fact, the probability of profit in many, if not most options strategies, is higher than outright stock ownership!! Stocks are a 50/50 bet. They go up or they go down. That’s it.
So,the next time someone tells you they don’t believe in options, tell them that options trading is not al the religious experience.
“Options trading” at its core
- is a means of reducing risk
- improving cost basis on stoxks already owned
- and reducing overall volatility in your portfolio.
This may not have much impact, but at least it will put you back on an even keel and maybe even bring some equilibrium back to the discussion.
Certainly, options have their challenges. There are many moving parts that need to be considered, but it is not an impossible subject to learn. See my post on basic options trading consideration for building a trade.
Here are a few more ideas you should think about, when building a trade. Click here for my Top 4 metrics for trading options.
Since I began this blog, I have gotten many requests about whether I offer option trading coaching. And the answer is a qualified Yes!. I do not offer a paid coaching service at this time. That is not my focus. But I do love to talk about options with people who have a strong interest in learning. Since you are probably new to options, you more than likely have many questions about the best way to get started. And I would like to help you answer those questions.
Please Leave a cooment at the bottom send me an email about current or potential trade ideas. Your question will be given top priority and I promise to get back to you with my opinion as soon as I can.
Keep learning and happy trading!!