You’ve heard about option trading and you believe it could be right for your portfolio and investing style.
Options are NOT too risky
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 the next time someone tells you that, tell them that options trading is not all the religious experience. It’s a means of reducing risk, improving cost basis and reducing 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.
Options trading is all about Skill Developement
Certainly, options have many moving parts that need to be considered, but it is not an impossible subject to learn. After getting some basic considerations under your belt, you can be confident that you will begin to build some skills.
Skills and a solid Mechanical Process win the day
In addition to the basic considerations, you should begin to develope some mechanical procedures as you start putting on trades. Here are four important ideas that you need to have in your toolbox.
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. 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 feel free to send me questions 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.