by Ken Trester 07/03/08
HIT 'EM LIKE BABE RUTH
Your need to be a slugger -- you need to hit home runs in order to stay in the game through, and beyond, the playoffs. And those types of trades are best defined as options that return 150% to 1,000% profits.
When you buy cheaper options ($2 or less), you have the ability to hit home runs. And if you take a loss, it's a minor-league loss.
My portfolio is full of prime lessons on how home runs are our salvation and the route to big profits over time. It's the type of trade to aim for -- that's why you have to play your heart out in the options-trading game. You never know which opportunity is going to land you in the options trading Hall of Fame.
Banking a triple-digit profit means that the next several option positions could expire worthless and you still would have a profit. Heck, you could trade for almost a year -- losing every trade and, depending on how many contracts you played, you may still have money in the bank.
That's exactly why you need to hit home runs. You see just one or two can pay for a lot of strikeouts, mistakes and market whims that can crush a good position.
5 Ways to Profit From Volatility
The crazy volatility spike has some people shying away from trading, and they're missing out. Find out how to use volatility to your advantage.
Volatility: The Option Buyer's Secret Weapon
Many experts claim that buying options is a sucker's game, but they don't understand the rules.
Diversify Your Options Universe
Diversity makes the world go 'round, and the same is true of your portfolio.
Give Yourself Time to Be Right
Risk is everywhere on Wall Street, conquer it with stock options.
Stay Invested During Volatile Times
Hanging on during a wild roller-coaster ride of market volatility takes research and thought. But the payoff can be exciting.
