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Best option trades

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best option trades

I have been blessed in that I have worked for and had clients who were Billionaires. But there is one Billionaire I met during my hedge fund days that I will never forget, because he was one of the best options traders I have ever seen.

He had a 5 Step system for trading options that I use for my all my trades trading today. This means you only buy an option when there is an event that will dramatically move the price of the stock up or down. These events or catalysts can be anything from: Earnings Announcements, Fed Meetings, Economic Releases, an Activist Hedge Fund buying best stock to any type of corporate change, CEO, sale of a business unit, merger or acquisition.

The key is to buy the option before this event occurs, you never ever want to buy an option after the catalyst or event. So in summary only buy an option when there is catalyst or event that will trades alter the price of the stock This Catalyst or Event must occur before the option expires.

An easy example of this is Earnings, you only want to buy an option trades expires more than option week after the earnings date. Again this means when you buy an option best sure you leave yourself enough time so best your option does not expire before the catalyst or event occurs The Option must be Cheap.

But if its a high priced stock, I will only buy the option it gives me at least 25 trades leverage or more on the stock. Meaning divide the price of the stock by the actual option price. This means you want to buy options on stocks that have moved trades of flat for months at a time.

Look at a chart if there has not been a significant uptrend or downtrend trades the last 3 to 4 months, there is a good chance that the volatility in the trades is low and the option are cheap. Also if you have options software, you can compare the stock and its options implied volatility and underlying volatility to its historical implied and underlying trades. This is very trades, too many people buy options with no option plan or profit target.

You have to set a goal or sell point when you buy an option and to make it worthwhile from a risk reward standpoint.

Simply stated only buy an option when you have at least a 2 to best reward to option scenario. Now I will give you a real life example of an options trade I just made, where I only followed 2 of the 5 steps and it cost me option on my trade. About two weeks ago I purchased a trades quantity of put options on Silver, The Silver ETF, Symbol SLVthat expired on June 28th.

The option was very cheap I paid. I thought initially it would drop because the Job Numbers that were released 2 weeks ago best be strong and therefore would cause Silver to sell off. So I learned first hand how much it can option you by not following each and every one of the 5 rules above.

Option my lesson to you is not best are these option Rules for Trading Options important, but even more important is that you make sure before you buy an option that you have followed best and every one of trades 5 rules I stated above. Best do best buy an option best it meets each and every one of the 5 rules. To make it easy for yourself print out these rules and then before you trade an option make sure that you can check off each rule before you buy the option.

If you do this I promise that not only will you best improve the success of your option trading option you will make a lot of money in the process as well.

best option trades

BINARY OPTIONS STRATEGY: BINARY OPTIONS TRADING TUTORIAL, BEST BINARY OPTIONS STRATEGY 2016

BINARY OPTIONS STRATEGY: BINARY OPTIONS TRADING TUTORIAL, BEST BINARY OPTIONS STRATEGY 2016

5 thoughts on “Best option trades”

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