“Are options really worth the time and effort to learn?” “Options seem too complex for me.” These are a few of the comments I often hear from newer traders. People are fascinated with the financial markets and have that dream of hitting it big but for most people they think they have to buy stocks in order to be active. The problem with buying stocks for most retail traders is the lack of capital available to trade with. As a result people turn to penny stocks of forex because they can get started with a few hundred dollars. However, in these cases they are missing out on the most powerful instruments available to trades. Stock options open up a whole universe of opportunities for traders with any account size. We can still use the same few hundred dollars of capital but trade the popular high priced names.
We all hear about AMZN, TWTR and PCLN and most of us use their products all the time. The problem with these stocks is that they are expensive. By trading options we are able to play the big swings in the price of these stocks back and forth and do so for a fraction of the cost. Whether that be with simple call or put options or vertical spreads it doesn’t matter. By using these types of trades we are able to reduce our exposure to risk and open the door to really big returns. The best part about how we trade options at NetPicks is the lack of time commitment required to trade options. On most days I am in and out in 20 minutes a day or less. This means you can work a full time job or take care of the kids or even go play golf while making a solid income from the markets. Is it a get rich quick approach? Not at all. We are looking for consistent winners over time so we can safely grow an account.
If you are looking for a boost to your stock market returns or would like to give yourself another source of income you really need to look at trading options. I have put together a short video below that walks through a few trades on AMZN, TWTR and PCLN which shows you what we do each and everyday. Take a look and feel free to contact me with any questions. Mike@NetPicks.com.