Category: Options 101

This is the #1 Options Question You’ve Asked This Month – Here’s Your Answer

Whether you’re just getting started or have been trading for years, the single most important aspect of your trading career is knowledge.

And when it comes to your money, jumping into anything without thoroughly understanding it is a  mistake that you don’t want to make.

Now this month, you’ve been asking me about  a certain “all-or-nothing” option – and if it’s something you should really spend your time and money on.

So I’m going to give you the truth right now.

And it may surprise you…

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How to Avoid the Market’s Most Dangerous Game

At the beginning of the year, we talked about a strategy that is used to sell stock without actually owning the shares first.

And as you’ll recall, I said that I’d never  recommend this strategy to anyone. And I’d never use it myself, either.

But you’ve been asking a lot of questions recently about how dangerous this method of capturing gains really is – especially if it’s only used in the short term.

And I know that you’ve even seen articles from financial “gurus” who’ve not only attempted to refute all of the risks involved – but who’ve also promoted it.

So before you consider doing this…

I’m going to show you a much better way to lock in the same types of profits – without all of that risk.

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The Fastest-Growing Moneymaker in the World

According to the Options Clearing Corporation (OCC), the average daily options volume was 6,470 in 1973, the year in which listed, exchange-traded options first launched. Since then, the average daily options volume has increased to 16,443,005 – 2,500 times more than it was over 40 years ago.

And since weekly options started trading, they’ve become the most widely traded of any options class – averaging 25% of any option on the S&P 500.

There’s a reason for this… seven, actually.

The first one alone could double your money this week.

Take a look at all seven…

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Be in Two Places at Once Today (and Still Make a Killing)

You know by now that timing is everything.

The problem is…

Most traders feel like they have to sit in front of their computers all day to nail their perfect entries and exits.

But I’m sure you’ve got MUCH better things to do with your time besides staring at stock prices and charts all day – especially as we head into these hot, summer months.

And although computerized trading systems can work for some people, this type of trading doesn’t necessarily give you the full picture – and it doesn’t work for everyone.

Fortunately… you can watch your trades and spend your well-deserved time at the beach – without even looking at your computer.

And it all boils down to these three little orders…

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The Crucial “Timing Tip” You Should Know Before the Market Opens on Tuesday

Trading is a timing game.

And when it comes to options in particular, timing is absolutely critical.

Now you may have heard that options are fixed-time investments that expire on a specific date.

While that is true, that “fixed time” feature doesn’t have to work against you.

In fact, it can give you the flexibility to focus your trade the way you want – a flexibility you don’t have with a straight long or short equity position.

But you need to know how to handle this “fixed time” aspect, as it can make the difference between pocketing a small 15% gain and a gigantic 300% winner.

Don’t worry…

I’m going help you get this all down pat right now.

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This Low-Cost “Summer Play” Could Pay for Your Vacation

“Only the pros can trade options.”

This is probably the most common delusion about options that’s out there, aside from options being too risky.

But quite the contrary…

Every day, more and more people use options as their trading or investing method. Whether it’s to protect a portfolio of stocks or to take a small, leveraged position to control a larger quantity of stock, options are a great way to profit off any market condition.

Say, for example, that you’re a long-term investor who’s concerned about the safety of your portfolio. You can use options as insurance to help minimize the risk of a correction in the markets.

Likewise, say you want to get in on a hot new tech stock but don’t want to put a lot of capital into a position. Options trading could be the perfect answer for you.

Now last week, we talked about a strategy you can use to start generating income on a monthly basis. But this required you to own the stock in question – something you may not want to do.

So today, I’m going to show another easy way to make money without needing to own the stock first.

And this powerful play could help you squeeze time for cash… and set you up for endless profit potential.

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This Simple “Sell Strategy” Could Generate Monthly Profits Starting Now

We’ve talked about the seasonal effect that takes hold from May to November in the markets. This is a period of time when you will often hear the phrase “sell in May and go away.”  And this is largely in part because it’s during this six-month period when the markets historically do not perform well (and sometimes perform the worst).

As you’ll recall, traders really don’t need to worry because we’ve got easy plays we can use to capitalize on the markets – whether they’re up, down, or sideways.

And as a rules-based options trader, I hardly have any equity positions, so I personally don’t have a bunch of stock to be concerned about in rough markets.

That being said, I realize I’m not necessarily the “typical” market participant, and you may likely be holding stock in your portfolio and retirement account. You may have even held stock for many, many years – through the good times and the bad.

But you do have an alternative to simply holding your stock.

And I’m about to show you a strategy that anyone with “optionable” stock can consider…

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Tom Reveals Your Best Protection Against Early Assignment… Plus Much More

Over these last few and very volatile weeks, we’ve been talking about the top strategies you can use to capture profits  and hedge your risk.

But there’s a key component underlying all of these strategies that we haven’t yet talked about.

Until now…

I’m also going to walk you through the differences between two very common types of trading as well as a unique method to make money in one week, and much more…

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Your Top 10 Questions This Year Answered by America’s #1 Trader

There are hundreds of get-rich-quick schemes out there that promise to “make you one million dollars in 24 hours” or invite you to unlock a “$26 billion safe box…”

But the secret to a lifetime of wealth isn’t a billionaire’s safe box…

It’s knowledge.

And that’s the reason I started Power Profit Trades last year.

My only goal is to arm you with the knowledge and tools you need to make money quickly and safely.

We’ve been talking about a lot of different techniques you can use this year –  such as trading options on stocks that only require small price movements,  buying LEAPS, and trading around earnings.

But you’ve had some questions along the way – like using Bollinger Bands over Keltner Channels – and it’s important to our goal that your questions get answered.

So that’s what I’m going to do right now.

Here are the answers to your top 10 questions so far this year… the first one will blow your mind.

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“Supersize” Your Rewards Using this Unique Buy-and-Hold Strategy

Earnings season has been off to a bit of a rough start, with corporate earnings looking particularly bleak.

Just look at Monday, when U.S. stocks fell after a series of disappointing quarterly reports. And while all of the major indexes are up right now, analysts are projecting another round of subpar results.

That’s why last week, I told you that one of the best ways you can play earnings is to use the straddle.

Now using options, especially the more complex strategies, can be tricky because of their short-term nature. And options prices can move quickly and change drastically, which might scare off many buy-and-hold investors.

But what if I told you that you can leverage the power of options to lock in lock in triple-digit returns… without ever spending a dime on a single share of stock?

This method offers the luxury of time that buy-and-hold investors have without the high costs involved with buying the stock.

And while this particular strategy does come with its risks, it could be your best option to survive this earnings season.

Let’s get started…

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