Many successful stock traders have tried to make the switch to be profitable options trading “superstars”, but things just didn’t work out. The reason being, they typically brought the wrong game plan and process to the table.

Many successful stock traders have tried to make the switch to be profitable options trading “superstars”, but things just didn’t work out. The reason being, they typically brought the wrong game plan and process to the table.

Profitable Options Trading requires the ability to analyse stocks reasonably well, so you would think making the transition should be both straightforward and profitable, if you have had good success picking stocks! However, this is not always the case, and so beyond being able to analyse stocks, what else is needed?

Compare playing Checkers and Chess

 

Checkers or Draughts, enables the player to move in one direction, and is a little like trading shares in the traditional fashion. That is, you can only profit from a move up in the share prices (let’s put shorting stocks to one side for the moment).
However, by learning how to embrace options, you are effectively playing Chess instead, with strategies that can allow you to profit from a just about any set of circumstances – moves up in price, moves down in price, increases in volatility, falls in volatility, no movement at all in price and so on, and accessing this knowledge is the crux of profitable options trading.
Profitable Options Trading is a 3 Dimensional strategy
Adding to the move in the stock price, up or down, there are two (in fact there are more) critically important elements to consider; Time and Volatility.
Time is one element of trading that carries a guarantee!

That is that time always passes by! This can be an incredibly powerful ally for the right options strategy, or your worst nightmare, if you are in the wrong options strategy – the crux of this being whether you are a buyer or seller of options. As a seller of options, you want time to pass, you want the option to expire, you want to keep the premium. However, as a buyer, the opposite is the case, you don’t want time to pass – try stopping it!

Many successful stock traders have tried to make the switch to be profitable options trading “superstars”, but things just didn’t work out. The reason being, they typically brought the wrong game plan and process to the table.

Learning how to read the signposts is pretty important
No different to driving a car, being able to understand what the signposts are and what they mean, can make a big difference in the outcome of your journey. Profitable Options Trading is no different. Learn how options really work and you can look forward to playing Chess instead of Checkers with your trading and investing activities and the competitive advantage that comes from that. Also, you can enjoy the considerable benefits that correctly applied options strategies can bring.