We know that at Investing Shortcuts, there’s no shortage of great tips and tricks to help you with creating wealth. We also know that with the amount of tips we offer, it’s easy to get overwhelmed and hard to know where to start.
Options have many advantages, including reducing cost and risk while potentially increasing investment return. But how do you know the best strategy to use for your needs?
Lucky for you, there’s a simple way to help you objectively contemplate and compare disciplined trading candidates.
When it comes to trading options, the pros know that option trading is really about trading volatility more than anything else. You need to know how to determine whether or not an option is relatively expensive, cheap or near fair theoretical value.
The bane of the trader who buys options is the passage of time. He knows that every day his position is moving closer to expiration, the day after which the option ceases to exist. All of the time he paid for upfront, will be gone. And if the option is not in-the-money, so will the rest of his investment.
How many times have you thought to yourself that a BIG stock move is coming and the earnings announcement is going to be the price catalyst?
What if someone told you that there was a simple low-cost strategy with a twist that can position you for both a breakout or breakdown move with limited risk?
No, it’s not too good to be true.
Long options can provide investors with a limited risk way to utilize leverage. While buying options can be an extremely useful tool in the trader’s toolbox, long options can also provide a way to lose money quickly. One of the issues that many novice traders seem to struggle with is how much capital to commit to a speculative long options position.
Jeremy Blossom has been building ideas to grow businesses for more than 15 years. For over a decade Jeremy was active in the financial industry and his understanding of the financial sector is vast and deep. Under his leadership, he delivers result-focused strategies and executions that are designed to do one thing: make clients more profitable.