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Open an account with Benzinga’s best online broker, TD Ameritrade. $0 commissions on online stock, ETF, and option trades plus award-winning platform and customer service.
“There’s no such thing as a free lunch” is one of the oldest sayings around, and for the most part, it’s completely true. You get what you pay for, especially in the world of finance.
While you might be skeptical of any type of free offer, technology has made finance more efficient and transaction costs have gone down dramatically. In fact, it’s not hard to find a brokerage that will let you trade at least some part of the stock market completely commission-free. Commission-free usually means a trip to the designated ETF list, but some brokers offer everything for free, including options.
Commission-free usually means a trip to the designated ETF list, but some brokers offer everything for free, including options.
Best Free Options Trading Brokers:
- Best Overall for Options and Technology: TradeStation
- Best for Beginners: TD Ameritrade
- Best for Marginal Accounts: Interactive Brokers
- Best for Mobile Traders: E*TRADE
- Best Derivatives Only Broker: tastyworks
- Best for Social Traders: Gatsby
- Honorable Mention: eOption
Table of contents [ Hide ]
Best Free Options Trading Brokers
Choosing the best broker requires a little bit of research and not every trader has the same needs. Benzinga has created a list of favorite trading platforms for free paper trading and free or low-cost options trading.
1. Best Overall: TradeStation
- Advanced traders
- Options and futures traders
- Active stock traders
TradeStation is a popular platform for technical analysts and other stock pickers, but its paper trading simulation gives inexperienced traders a way to learn new skills without risking real cash.
Paper money can be traded on desktop and mobile, but only current TradeStation brokerage account holders can access the simulation for free.
TradeStation has a tilt toward active traders, so new traders can find plenty of research material and charting tools to test new strategies. TradeStation is a trusted name and its simulator is one of the best.
If you’re new to trading, you’ll love TradeStation’s Simulated Trading tool. Its Simulated Trading tool allows you to practice entering buy and sell orders, using TradeStation’s suite of charting and analysis tools and using your trading strategy without risking any of your own money.
2. Best for Beginners: Thinkorswim by TD Ameritrade
$0 $6.95 for OTC Stocks
- Novice investors
- Retirement savers
- Day traders
Thinkorswim is the gold standard for advanced trading features and using their paper money accounts is a great way to teach yourself technical analysis.
TD Ameritrade account holders will get $100,000 in fake money to trade stocks, bonds, futures, commodities and options. You’ll find over 100 technical tools on Thinkorswim and unlike many brokers, commission costs are factored in with your paper trading portfolio. This makes for a more realistic trading experience.
Top Binary Options Broker 2020!
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Paper trading is only worthwhile if the simulation is near perfect. Thinkorswim passes all the tests.
TD Ameritrade recently completed an acquisition of Scottrade, which will provide options traders with another level of flexibility as well. Right now, TD Ameritrade charges $0 fin options based fess and $0.65 for options per contract.
3. Best for Marginal Accounts: Interactive Brokers
- Access to foreign markets
- Comprehensive mobile app that makes trading simple
- Wide range of available account types and tradable assets
- Comprehensive, quick desktop platform
- Mobile app mirrors full capabilities of desktop version
- Access to massive range of tradable assets
The Interactive Brokers Trader Workstation provides a comprehensive list of options trading features and has been compared to the look and feel of a commercial airline cockpit. The workstation includes integrated tools such as IB Risk Navigator, Options Analytics and Model Navigator. It has a configurable format, quick-click order entry capabilities, and is extremely customizable.
The OptionTrader Combo tab allows traders to monitor price variations, view all available chains or filter for specific contracts and configure columns to view calculated model prices, implied volatilities open interest and Greeks.
Interactive Brokers also helps active traders minimize commissions and fees as well. Interactive Brokers charges nothing in options based fees but charges $0.65 per contract fee for options.
4. Best for Mobile Traders: E*TRADE
- Active traders
- Derivatives traders
- Retirement savers
- Sophisticated trading platforms
- Wide range of tradable assets
- Exceptional customer service
E*TRADE’s Power E*TRADE platform and mobile app are the gold standards of option trading platforms. Power E*TRADE currently offers traders premium-quality tools without the premium price tag.
According to a customer service rep, the long-term plan is to have the Power E*TRADE platform replace E*TRADE Pro as the premium service, but for now, it is free for all E*TRADE users.
Power E*TRADE is the perfect combination of speed, quality, tools, and navigation capabilities. The platform offers virtual trading for testing strategies. The option chain screen provides access to customizable real-time streaming option chains with up to 30 columns. The tradeLAB Snapshot Analysis breaks down risk/reward in an easy-to-understand way, indicating pros and cons as well as key events to watch for and a profit and loss chart. The strategySEEK tool allows users to scan market data and identify potential trading strategies.
For all E*TRADE’s advances option trading features, the broker charges $0 in options based fees and $0.65 for options per contract.
- Options traders
- Futures traders
- Advanced traders
- Powerful platform inspired by thinkorswim
- Multiple order types and strategies
- Cheap options commissions
5. Best Derivatives Only Broker: tastyworks
Tastyworks allows opening of an individual, entity/trust or joint account, and the account type held with the brokerage can be margin, cash or retirement. In margin trading, you are allowed to trade with borrowed capital, facilitating the use of all trading strategies available with the broker, while a cash account requires that you fully fund transactions, and also restricts usage of some trading strategies such as spread and uncovered options.
The web-based trading platform allows access from any computer and gives all functionalities as the downloadable version. Some of the features in the browser version is the Follow page, where you can follow the firm’s curated experts’ trade, Trade Curve, which allows visualization of trades easily and the Trade History option, which helps you analyze your trades.
Though opening an account is fairly easy, a prospective client is required to register with tastyworks ahead of time with an email address, username, and password, as well as:
- Address and phone numbers,
- Citizenship status,
- Personal information such as Social Security Number and employment information,
- Bank details and
- Copies of identity and address proofs.
Once an account is registered, it normally takes one to three days to be approved.
6. Best for Social Traders: Gatsby
$0 per stock trade
- Retail investors
- Traders new to options
- Social traders
- Millennial traders
Gatsby and Robinhood a bit in common. Like Robinhood, Gatsby had a soft launch and the only way to access the platform is to get on the waiting list. Also like Robinhood, all trading on Gatsby is commission-free. Gatsby’s founders seek to “democratize the world of options” by simplifying the language and making it easier for newbies to understand.
You’ll be asked a series of simple questions on Gatsby’s platform. If you think a certain stock will fall, you’ll be directed to the put options (and call options if you think the stock price will rise). You’ll then choose a strike price and expiration date and initiate your trade, all done in 4 quick phone swipes. Gatsby and Robinhood are the only truly commission-free brokers for options trading.
7. Honorable Mention: eOption
$0 for stocks and ETFs broker assited orders an additional $6
- Options traders looking for low-cost options contracts
- Beginner and advanced traders looking for options education
- Advanced traders who don’t need a lot of platform guidance
eOption isn’t a commission-free brokerage, but the transactions costs here are among the lowest in the industry. For options trades, you’ll only pay $3 per trade plus $0.15 per contract.
Many legacy brokers charge upward of $0.60 to $0.75 cents per contract, so this is a great deal. You’ll also get plenty of bang for your buck, thanks to eOption’s bells and whistles. You can set up an automated strategy using its Auto Trading feature and even get direct market access through the Sterling Pro Trader.
eOption has a $500 minimum to open an account and offers traditional, Roth, SEP and Coverdell IRAs.
Can You Really Trade Options for Free?
The short answer is: Absolutely! Brokers continually undercut each other on commissions and that’s great news for retail traders.
Online brokers rarely have commissions higher than $5 to $7 these days and disruptors like Robinhood and Gatsby Options have gone even lower than that. Both offer $0 commissions on all options trades.
Another way to trade options for free is through paper trading. With a paper trading account, you’ll be given Monopoly money in a simulated brokerage account and can actively trade the market with your fake cash. Paper trading is a great way to hone your skills, practice new strategies and figure out how to trade.
But which should you choose, free trading or paper trading? When it comes to options brokers, all it depends on your bankroll and experience level as a trader.
Before choosing an options broker, you need to determine your own investing goals. Do you simply want to make the most possible money? Do you have a specific savings target in mind? Or do just want to increase your knowledge of the options market and explore how different strategies work?
If you’re inexperienced with options or want to try out a few new strategies, paper trading might be your best bet. However, if you’re a veteran trader and you want to cut your transaction costs, take a look at some of our favorite free or low-cost options brokers.
Practice makes perfect and that’s why paper trading is so popular, especially among new traders. With paper trading, you aren’t putting any real capital at risk, but you can simulate live action in the markets or even go back in time and trade through previous periods. Many brokers have a free paper trading account available to anyone with a real brokerage account.
However, know that paper trading has drawbacks. Fake money means no skin in the game. All the emotion is taken out of trading, which is something that will never happen in the real market. Expertise in paper trading does not automatically translate to success in the real world.
Using a Free or Low-Cost Broker
If paper trading doesn’t appeal to you, finding a free or low-cost broker should be your alternative goal. Free trading is still a relatively new concept, but brokers like Robinhood and Gatsby Options have totally removed commissions.
Even traditional legacy brokers are getting into the race to zero (for example, Fidelity now has zero-expense ETFs). Finding a free or low-cost broker to trade options is no longer like looking for a needle in a haystack.
Options Spreads Explained – A Complete Guide
Every options trader should know what options spreads are and what different types of options spreads exist. If you aren’t completely familiar with options spreads, this article will definitely help you out! After reading this article, you won’t only know what an options spread is. You will also be familiarized with all the different options spreads that exist. This is very powerful because if you fully understand options spreads, you will understand ALL options strategies!
So without further ado, let’s get started.
What Is An Option Spread?
Before we get into the different kinds of options spreads that exist, it is important to understand what an options spread even is. So what is an option spread?
An options spread is an option strategy involving the purchase and sale of options at different strike prices and/or different expiration dates on one underlying asset. An options spread consists of one type of option only. This means that options spreads either solely consist of call or put options, not both. Furthermore, an options spread has the same number of long as short options.
Let me give you a concrete example to make it clear what an options spread is. The following position is an options spread:
- 1 XYZ short call with a strike price of 100 that expires in 40 days.
- 1 XYZ long call with a strike price of 105 that expires in 40 days.
As you can see, the just-described options only differ in regards to strike price and opening transaction (one call option is bought and the other one is sold).
Let’s recap the characteristics of an options spread:
- All involved options are on the same underlying asset (e.g. XYZ).
- All involved options are of the same type (call or put).
- An options spread always consists of the same number of purchased as sold options (e.g. 5 short and 5 long).
In other words, the options involved in an options spread only differ in regards to strike price and/or expiration date. This is the case for all options spreads, regardless of kind. So when I will walk you through all the different options spreads in a few moments, keep this in mind.
Even though the options involved in an options spread only differ in regards to 1-2 aspects, it is still possible to create a wide variety of different options spreads.
Next up, I will walk you through all the different kinds of options spreads: vertical spreads, horizontal spreads, diagonal spreads, credit spreads, debit spreads, bull spreads…
Option Spreads Visually Explained
Watch the following video for a visual breakdown of option spreads:
Different types of options spreads explained
What are vertical spreads?
Vertical spreads are options spreads created with options that only differ in regards to strike price. So basically, a vertical spread consists of the same number of short calls as long calls or the same number of long puts as short puts with the same expiration date (on the same underlying asset).
This doesn’t leave too many possibilities. That is also why only four different vertical spreads exist, namely bull call spreads, bear call spreads, bull put spreads and bear put spreads.
These four different vertical spreads can be ordered into different categories:
- Bull Spreads: Bullish spreads (that profit from increases in the underlying asset’s price).
- Bear Spreads: Bearish spreads (that profit from decreases in the underlying asset’s price).
- Call Spreads: Spreads that consist of call options only.
- Put Spreads: Spreads that consist of put options only.
- Credit Spreads: Spreads that are opened for a credit (you get paid to open).
- Debit Spreads: Spreads that are opened for a debit (you pay to open).
A bull call spread is a bullish debit spread, whereas a bear call spread is a bearish credit spread. A bull put spread is a bullish credit spread and a bear put spread is a bearish debit spread.
Here is how the four different vertical spreads are set up:
Bull Call Spread (aka. Long Call Spread):
- 1 long call
- 1 short call at a higher strike price (with the same expiration date)
Bear Call Spread (aka. Short Call Spread):
- 1 short call
- 1 long call at a higher strike price (with the same expiration date)
Bull Put Spread (aka. Short Put Spread):
- 1 long put
- 1 short put at a higher strike price (with the same expiration date)
Bear Put Spread (aka. Long Put Spread):
- 1 short put
- 1 long put at a higher strike price (with the same expiration date)
All vertical spreads are defined risk and defined profit strategies which means that you can’t lose or profit more than a certain amount. The amount of risk and potential profit depends on the width of the strikes and on the position of the strikes in relation to the underlying’s price.
To calculate the max risk and max profit of vertical spreads, you need one calculation:
Width of Strikes × 100 − Net Credit or Debit
This calculation reveals the max risk of credit spreads (Bull Put Spreads and Bear Call Spreads) and the max profit of debit spreads (Bear Put Spreads and Bull Call Spreads).
The max profit of credit spreads equals the net credit collected to open, whereas the max risk of debit spreads equals the net debit paid to open.
Vertical spreads are directional strategies which means that they mainly profit from price movement in the underlying asset’s price. That’s also why they are called bull/bear spreads. This means that vertical spreads are a strategy principally used to take advantage of price movement. Nevertheless, implied volatility and time still can influence vertical spreads to a certain extent.
What are horizontal spreads?
Horizontal spreads are options strategies that consist of the same number of long as short options that only differ in regards to the expiration date (on the same underlying asset). In other words, the options involved have the same strike price but a different expiration date.
Let me give you a concrete example to explain what a horizontal spread is:
- 1 long ABC call with a strike price of 50 that expires in 29 days (front-month).
- 1 short ABC call with a strike price of 50 that expires in 57 days (back-month).
Just like with vertical spreads, there only exist four different kinds of horizontal spreads, namely short call calendar spreads, long call calendar spreads, short put calendar spreads and long put calendar spreads. As you may have noticed, all of these spreads are calendar spreads. That is also the reason why horizontal spreads also are referred to as calendar spreads.
The setup of these four different calendar spreads is relatively simple:
Long Call Calendar Spread:
- 1 short call (front-month)
- 1 long call at the same strike price (back-month)
Short Call Calendar Spread:
- 1 long call (front-month)
- 1 short call at the same strike price (back-month)
Long Put Calendar Spread:
- 1 short put (front-month)
- 1 long put at the same strike price (back-month)
Short Put Calendar Spread:
- 1 long put (front-month)
- 1 short put at the same strike price (back-month)
Calendar spreads are mainly used as a strategy to profit from changes in implied volatility and from time decay. For instance, long calendar spreads profit from increases in implied volatility.
Generally, calendar spreads aren’t a very directional strategy. But depending on the strike selection, calendar spreads can be set up more and less directional.
What are diagonal spreads?
Diagonal spreads are a combination of vertical and horizontal spreads. A diagonal spread is a strategy that consists of the same number of long as short options that have different strike prices and different expiration dates.
The options used in vertical spreads only differ in regards to strike price, the options used in horizontal spreads only differ in regards to the expiration date and the options used in diagonal spreads differ in regards to both strike price and the expiration date.
There are many different ways to set up diagonal spreads. But here are a few concrete examples of possible diagonal spreads.
Diagonal spread example 1:
- 1 short XYZ call with a strike price of 185 that expires in 27 days (front-month).
- 1 long XYZ call with a strike price of 190 that expires in 55 days (back-month).
Diagonal spread example 2:
- 1 long ABC put with a strike price of 78 that expires in 20 days (front-month).
- 1 short ABC put with a strike price of 72 that expires in 48 days (back-month).
Just like I said before, diagonal spreads are a combination of vertical and horizontal spreads. This means that they try to profit from changes in both the underlying asset’s price and implied volatility/time. Diagonal spreads can be slightly to very directional strategies.
Recap – Options Spreads Explained
It is very important to understand what an options spread is and what different kinds of spreads exist. That’s why I want to recap some of the most important points of this article.
I created the following table to visually explain the different options spreads. Furthermore, this table actually reveals why the different spreads are called the way that they are (horizontal, vertical, diagonal).
Now you should know what different spreads exist. But you might ask yourself the question, which of these spreads is best.
There is no one right answer to this question. Not one spread is better than another. It really depends on the current market situation and on personal preferences. For instance, if you are bullish on a stock and want to take advantage of an up-move, a bull call vertical spread might be a good strategy. However, if you want to profit from a rise in implied volatility and don’t have a certain directional assumption, a horizontal/calendar spread would probably be a better choice…
I hope you understand what I am trying to say.
But generally speaking, vertical spreads are the simplest of the three. Horizontal and especially diagonal spreads are much more complex due to the different expiration dates of the different options. Therefore, I wouldn’t necessarily recommend trading (horizontal or) diagonal spreads if you aren’t completely familiar with them.
In the introduction, I mentioned that if you fully understand options spreads, you will understand all options strategies. But why do I think this?
The reason why I am saying this is that options spreads are the building blocks of almost all other options strategies. If you combine multiple options spreads, you can create almost any strategy. So instead of trying to understand how these dozens of different strategies work, it is much more efficient to learn how the building blocks of these strategies work.
Let me give you a few examples:
You probably realized that vertical spreads are relatively simple (compared to other options strategies). They are a two-leg strategy that consists of a long call and short call or a long put and short put.
But what happens if we combine multiple vertical spreads?
A new strategy is born! There are four different vertical spreads that can be combined to create a new strategy. I will now give you some concrete examples of what happens when you combine multiple vertical spreads.
You may or may not know the option strategy iron condors. It is a very good and popular four-leg options strategy. Due to its four legs, it is usually labeled as an ‘advanced’ options strategy. But in reality, it isn’t anything else than a combination of two simple credit spreads.
I created the following image to explain this concept visually.
Hopefully, you can see how a combination of a bear call spread and a bull put spread create an iron condor.
Now let me give you another concrete example. Butterflies are another options strategy often referred to as complex and thus, only suitable for ‘advanced’ traders. But just like with iron condors, butterflies aren’t very complicated either. They are simply a combination of a bear call spread and a bull call spread.
Hopefully, these two examples make it clear how options spreads are the building blocks of most options strategies. These were just two of many examples where this is the case.
So in conclusion, options spreads can be thought of as Lego bricks. Just like Legos, options spreads can be combined in many different ways to create whatever your heart desires.
If you want to learn more about options strategies and when to use which strategies, you might want to check out my free strategy selection handbook.
My goal with this article was to introduce you to options spreads and thereby build a stable foundation for options trading strategies. It would be awesome of you to let me know if I achieved this goal in the comment section below!
Furthermore, if you have any questions, feedback or other comments, please tell me in the comment section.
10 Replies to “Options Spreads Explained – A Complete Guide”
Your explanation of the Option Spreads as building blocks to other strategies makes sense, but I am confused by the Iron Condor and Butterfly.
Does the Iron Condor and Butterfly make you money if the underlying asset price does not go over a certain amount or go over and then come back down before expiration?
That’s kind of what it looks like from looking at the graphs you included.
Thanks for your question. Iron condors and butterflies profit if the underlying asset’s price stays in a certain range. The size of this range depends on the strikes selected and the premium received/paid. I hope this helps with clarifying the confusion.
Otherwise, you could check out my article on Iron Condors and Butterflies.
Reading through this very comprehensive article on Option Spreads in Trading was so interesting. For someone new to this world of Trading it would need to be gone through a few times to fully understand all the terminology and nuances of trading. It is really complex for an ordinary person not versed in doing anything like this previously.
To my mind, if you are ready to Trade, you would need to be aware of the risks involved and not be afraid of losses. Only Trade with the amount you can afford, would be my way of thinking. Perhaps am too conservative.
It was very interesting to learn something new. Will take a look at it again at a later stage.
Thanks for the comment Jill. It is completely normal for people new to the world of trading to have trouble understanding everything. That’s actually also why I created a free trading terminology handbook in which you can look up all the seemingly complicated trading terms. So judging from your comment, you could definitely use my free trading glossary.
And no you are not too conservative! You should never risk more than you can afford to lose.
Hi Louis, I have completed your education classes and they are good, and I have learnt a lot. Best of all, I have learnt more from your free education than all the other programs I have paid for. Be leave me I have spent a lot of money on paid sites and it is not worth it. Selling short term options is my goal. However, I am have trouble comprehending receiving a credit when I sell an option. When I sell an option for a credit, I only receive the credit if it expires worthless Right. Thanks for your help
Thanks for the question. I hope I can clarify your confusion. When you sell an option to open a position, you receive a credit. So now you have a negative position open. To close this position, you could either buy back the sold option or wait until expiration. If you buy it back, you will give up some of the received credit. The amount of credit that you give back depends on the option’s price. If it has gone up, you might even have to pay more to close the position than you received when opening it.
If at expiration, the underlying’s price is at the right point, the option might expire worthless and only then, you could keep the entire credit that you collected when putting on the position.
Let me give you a concrete example:
You sell a call option with a strike price of $105 on XYZ which is trading at $100. You receive a credit of $1,50 (so $150). But now you have an open position which has to be closed for you to lock in the profit. As long as the position is open, the profits (or losses) are purely paper profits (or losses). They are only realized if you close the position which you can do by buying back the call option or by waiting until the expiration date.
Let’s say, you buy back the call option for $0,7 two weeks later. This would mean that you have a realized profit of $1,5 – $0,7 = $0,8 (or $80). So you can keep $80 of the collected credit.
If you instead wait until expiration and XYZ’s price is still below $105, you can keep the entire $150 of credit.
I really hope this helps. If you have any other follow-up questions, let me know.
In your reply to Tom looks like you did not mention that at expirations time if the stock price is above the strike price in a short call or below the strike price in short put, he would be forced to buy the stock at the strike price.
Thanks for the comment. Usually, when a trade such as a short call or short put is ITM shortly before expiration, I recommend closing the position for a loss. If you do this, you won’t have to buy or sell any shares at the strike price. I never recommend holding a losing short option position into expiration (unless you want to buy or sell stock at the strike price).
But you are right that if you would hold such a position into expiration, you would have to buy/sell stock at the strike price.
since a call spread would probably be assigned if the stock price goes above the strike price, it seems to me that it would be better to use a put spread when one expects the stock to go up and a call spread when one expects it to go down. Opposite of single options.
Hi and thanks for your comment,
I wouldn’t use assignment risk as a main factor when choosing which strategy to go for. Instead, I recommend looking at different market variables such as implied volatility, time till expiration, underlying asset, and price. Depending on the situation and your market assumption, a bull put spread can be better than a bull call spread and vice versa. The same goes for bear spreads. It depends on the situation.
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Listen, if you’re like most people today, you’re probably:
- Tired of making next to nothing on your investments.
- Tired of seeing your retirement portfolio (and plans) slowly slip away.
- Tired of getting the same old dismal returns in the market.
- Tired of getting bummed out every time you look at your 401k.
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Monday 5:30 AM
Whether you’re a seasoned trader or a complete beginner, you’re about to discover options are not nearly as complicated or as risky as you have been led to believe.
The truth is, most people, even many experienced stock brokers, just don’t understand options. You see, stocks have been around for literally hundreds of years, but listed options are relatively new. They are just a little over 40 years old. So it’s understandable that most people don’t know how they work.
That’s where I come in. You see, I have spent the last 23 years studying, learning, planning, testing and perfecting a simple system for trading options.
That system – allows my family and I to live a lifestyle most people can only dream of.
(NOTE: The course contains FULL SIZE videos so you can see everything clearly.)
And Now, I’m Here to Share
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First, let’s make sure you understand what options are. You may already know, but just in case you don’t, let me give you a simple example to illustrate how options work:
Let’s say you see an ad in your local paper for a pair of blue jeans. Your local clothing store is running a sale on them, and for next three days they are only $30. However, by the time you make it to the store they are all sold out of your size.
To keep you as a happy customer, the store clerk offers you a rain check. It entitles you to purchase a pair of the jeans at the sale price – $30 anytime within the next 60 days.
That rain check is just like an option. You have the right – but not the obligation – to buy the blue jeans at the guaranteed price of $30 any time before the expiration date in 60 days. The only difference is, with an option they charge you a small premium for that right.
What Makes Options
Well, let’s take a look at the difference between buying a share of stock and buying an option.
Let’s say you get a hot tip. Your buddy tells you about a stock that’s just getting ready to take off. You know that everything your buddy touches turns to gold, so you decide to invest $10,000 in the stock.
Let’s assume the stock is priced at $100 per share, so you end up with 100 shares of the stock.
Now, let’s say your buddy is right and the stock takes off. It increases in value by fifty percent.
Not bad. Your stock went up by $50 a share. So if you decide to sell your 100 shares, you’ll profit $5000 ($50 X 100 shares).
Now, let’s go back to the beginning and consider what would have happened if you had invested your $10,000 into options to buy the stock, rather than investing in the stock itself.
Let’s assume you could purchase an option to buy a share of the same hot stock for $5 each (you are paying a $5 “premium” for the right – but not the obligation – to buy the stock). So now, your same $10,000 would get you the option on 2000 shares of stock.
Once again, we’ll say your buddy knew what he was talking about and the stock went up by fifty percent.
So, once again you made a killing. However, because we’re dealing with options, we have to calculate your profits a little differently this time. We have to figure in the price of the premium you paid for the option. So instead of making a profit of $50 on each share, you only made $45 on each option.
But wait a minute, since you were able to purchase the option on 2000 shares of stock, your profit jumps to $90,000!
Yes, Your Profit Jumps
Now that illustrates the Power and Leverage you get with options.
And get this, that’s just one of the reasons options have become increasingly popular recently. There are many more including:
- You get unlimited profit potential. five-figure monthly incomes are realistically within reach!
- You can easily limit your risk and make losses virtually nonexistent!
- You get the ability to profit whether the market is falling or rising (In fact, smart investors can make oodles of cash even during a market crash!)
- You can quickly change your strategy mid-stream, to actually make money off a losing trade!
- You can easily diversify your portfolio. options are readily available on stocks, indexes, futures and currencies.
If you get it wrong. you can lose money just as fast as you can make it with options!
So don’t think you can run right out and start making a ton of money with options. It’s critical that you have a good understanding of the options market before you dive in.
You need to find a good mentor. Someone that’s been extremely successful trading options. Someone with a proven system. Someone that can take you by the hand and walk you step-by-step through the entire process.
That’s where I come in.
But — that also brings up a good point: Unlike many people who teach stocks and options, I am not a former “market-maker” or specialist or a licensed professional in the financial industry.
I am a retail investor just like you, who after 23 years of testing and tweaking found a way to be successful and profitable trading stocks and options as a business. A successful business I run from home.
And, the business methods I use are the same ones used by professional hedge fund managers and market professionals who rarely, if ever, talk about their strategies.
So Why On Earth
Would I Share
My Secrets With You?
1) First, in this business, competition is good.
The markets are huge and worldwide. You can’t have too many traders. In fact, the more traders you have, the more money you can make and the more liquid the market becomes.
You actually want more people in the market.
2) Second, I want to give back.
This business has been very good to me. I’ve been fortunate enough to use it to build a lifestyle for my family that allows us the freedom to go wherever we want and do pretty much whatever we want. As long as I’ve got my laptop and an Internet connection, I’m all set.
Just imagine what it would be like for you to be able to give your family the same freedom.
3) Third, I love to teach.
I have been teaching people how to use the Internet to start a business since 1999. Thousands of people have learned how to make their living online with my courses, and that’s been very rewarding for me.
Now, it can be very rewarding for you too. You see, one thing I’ve learned in all my years of teaching is the very best way for you to learn is to have me show you how to do something – step-by-step – before you attempt it yourself. That’s why throughout my “Expert Option Trading” course you get to.
Look Over My Shoulder as
I Make My Own Trades
That’s right. You actually get to watch as I make my daily trades and listen as I explain why I make the moves I do. You get to see exactly how I make money in the market.
- Watch and listen as I pick which options I want to buy and sell and then explain why.
- Look over my shoulder as I strategize about which trades to put together into a portfolio that will maximize profits and minimize risk.
- Watch as I manage my portfolio in less than 15 minutes a day.
- Follow along as I decide when to close a trade out and take my profits.
You get to look over my shoulder and watch me actually make money in the market . Who else does that? No one that I know of. You may be able to hire a personal trading coach that will do the same thing if you’re willing to spend thousands of dollars, but I’ve never seen anyone offering it.
And it doesn’t have to stop when you’re done with the course. Just sign up for my newsletter and you’ll be able to continue to watch as I make trades and manage my portfolio on a daily basis . See exactly how I make my living in the market.
“This Information is Priceless”
I just wanted to say. I bought your course and it is great! I watched all the videos in about one week and will be reviewing them again. I’m hooked on this stuff! I just started trading paper to try it out and hopefully build my confidence.
This information is priceless whether you want to follow the strategies presented or not. I’m very excited and hope that in a couple years I can do this as a business. I’ve always wanted or at least loved the idea of trading as a business at home, but I didn’t think it was possible. My experience was that it was a total crap shoot. But, as your course pointed out I’ve been trading blind.
This think or swim application is so unbelievable how you can analyze just about every possibility instantly in real time. And your strategies are so sound and logical. I love how the videos demonstrate exactly what you are teaching. Excellent!
A Radically Different
Approach to Options Trading!
Look, most people approach the options market as pure speculation or worse yet, gambling. That’s why most people think the options market is too risky. In this course, you’ll discover how to virtually eliminate the risk and approach trading as a real business.
It’s simple: All businesses buy and sell something to make money. you’ll be buying and selling options in your business. In addition, all good businesses are managed based on numbers and ratios – you’ll discover how to do the same exact thing. You’ll manage your business strictly by the numbers.
This takes your emotions totally out of the picture, which in turn removes most of the risk.
In fact, you’ll know exactly what your maximum profits are going to be BEFORE you ever place a trade. You won’t have to guess or speculate – you’ll have a plan.
Then – You’ll simply manage your position. And – if necessary, you’ll make adjustments to remain profitable. Or – you’ll use smart risk management tactics to cut your losses. Then – you’ll just collect your profits at the end of the trading cycle (monthly). That’s it!
And the best part is.
You Can Do All This In
Just 15 Minutes A Day !
That’s right — Once your trades are set up for the month, it takes less than 15 minutes a day to look over the numbers and make any adjustments necessary. You won’t find a simpler business to run.
And listen, this business will never change. The principles, once you learn them, are yours forever. You’ll be able to hand them down to your children and grandchildren.
The principles will never change because the markets never really change. New products may come on the market, but as long as the stock market is still around, the basics of this business will never change.
This business is ‘Evergreen’, and the principles you’re learning will be valuable for many, many years to come.
And here are just a few of those principles you’ll be discovering:
- How you can use options to Generate a Steady Monthly Cash Flow. you may even decide to walk away from your day job!
- How to manage your options business strictly by the numbers. take your emotions completely out of the picture (this is HUGE!)
- Why Risk Management is the key to your success in any type of trading. and why it’s essential in options trading!
- How to create and utilize “Risk Profiles”. visually determine a trade’s potential profitability in one glance.
- The secret that 99.8% of option traders don’t know. how to quickly change your strategy if the stock goes against you – up or down.
What Will Be Covered
for You In The Course?
You will get a total of 12 modules. Each one contains several ‘hands-on’ videos. Look over my shoulder and follow along as I walk you step-by-step through each topic.
Here’s just a small sample of things you’ll discover:
Module 1: Introduction To Trading As A Business
Description: This section introduces you to a new way of trading options — as a business. Emphasis is on risk management and building a portfolio of trades that can be managed strictly ‘by the numbers’.
Module 5: Portfolio Building
Description: You’ll discover how to build a portfolio by putting on positions that work together. This is where many traders go wrong – they put on individual positions and do not understand how they affect their overall portfolio.