Leverage Introduction
Options are the icing on the cake. If you get the market right and the stock right you can trade almost any options strategy and make money. We understand that traders are excited about the big returns they can make trading options, but leverage is a double edged sword that cuts deeply. Consequently, most of our focus is on the first two steps.
Until you have mastered our system and until your win rate is greater than 75% for two straight months, you should only be trading 1 share of stock. It will take time for you to reach that level and our technology, educational materials and community will help you get there. You will make mistakes and you need to keep the “tuition” small. Once you get to that level you can gradually increase your size and you can start trying some options strategies.
In this section we are going to highlight some of our favorite option trading strategies. You’ll learn why we like them, when to use them, how to structure the trades and when to exit. We stick to basic options strategies like buying call/puts, and vertical spreads. These basic strategies are all you need and you’ll be covered for any situation. You won’t need a math degree and we’ll keep it simple. Remember, options are the icing on the cake.
Let’s dive into some options strategies!