“LET’S GET SERIOUS ABOUT MAKING MONEY.”

Let us talk about the hardest form of making money investing: Stock Market ^(http://www.ucontext.com/cbhop.php/4314/0/f19b18f69dfcc10a12850cdfaf93a2b0/stock+market) Option Trading.

 If you have any experience in the Stock Market you undoubtedly have heard of Options. But what exactly are options; simply put options are an agreement between two parties to buy or sell shares at a pre-defined date and price. Commonly called ‘CALLS’ when you sell an option for someone to buy your shares, and “PUTS” when you sell an option for someone to buy your shares. From there it gets very complicated and this is where lots of eager option traders come unstuck.

 If you are contemplating trading options ^(http://www.ucontext.com/cbhop.php/4314/0/7a5944b898935f379b6c617e943d93bd/trading+options) or even if you have had some experience trading options you should be warned that there absolutes in what you should or should not do.  There are many advantages that option trading has over other forms of investing. Option contracts can give you the flexibility to take a bet on individual market outcomes. And that bet can be placed for an event 6 months into the future.

 In Option Trading ^(http://www.ucontext.com/cbhop.php/4314/0/0c0ee8c943e9eeb540aae83d50f8d23e/option+trading) we talk about things such as “Long Straddle and Long Strangles”. Then there are things like leverage and what about this one “Your Theta” or another “The Greeks” Confused yet?

 The confusion of terms and techniques associated with Option Trading can make ^(http://www.ucontext.com/cbhop.php/4314/0/4bae7e4b05bec27407db667963323b21/trading+can+make) this a dangerous business. On the other hand Option trading can make ^(http://www.ucontext.com/cbhop.php/4314/0/4bae7e4b05bec27407db667963323b21/option+trading+can+make) you huge amounts of money and if you don’t know what you are doing it can loose you the same amounts of money.

 MR (ed)

www.expandingwealth.com

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