Chris Rowe

How Delta Can Make You Millions

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After you realize that you would almost be foolish if you ever traded stocks or exchange-traded funds (ETFs) again (instead of positioning yourselves CORRECTLY in the right option, using the right amount of money), the next question is:

Out of the numerous options contracts listed on any given stock/ETF, how do you know which is the right one to buy?"

I want to make sure you have a thorough understanding of the power you have to take charge of your portfolio and preserve the wealth you have, and make much more, the right way.

My promise: Studying my series on delta (be sure to review Part I, Part II, Part III and Part IV), and following the simple steps I describe will ...

1. Change your investment life dramatically by showing you how to position yourself to lose MUCH less when you're wrong and make much more when you're right.

2. Give you an edge over more than 90% of individual investors.

3. Make you feel like thanking me over and over again for harping on the importance of understanding delta.

4. Make you understand why you should be trading options much more than stocks/ETFs, if not exclusively.

The goal of this article: to show you how to lock in the profits that you make, when the stock/ETF moves in the right direction, without exiting the position!

Let the Games Begin!

In this series on delta, I have been showing you why it typically doesn't make sense to trade any stock or ETF if you can trade the stock option or ETF option instead. Using options, you can take just a fraction of the risk while being in the position to make the same (or much larger) reward. 

Without knowing much about options, you can still position yourself so you'll make more when your stock/ETF moves in the right direction by 10 points (etc.) that you would lose if the stock/ETF moves in the wrong direction by 10 points (etc.). 

You are taking unnecessary risk with stocks/ETFs because, with a 10-point move on 1,000 shares, for example, you'd make $10,000 when you're right, and lose $10,000 when you're wrong. 

But if you trade the way I always suggest, you'd make more like $11,500-$12,000 when you're right, and lose more like $8,500-$9,000 when wrong.