by Ken Trester 07/03/08
BECOME AN OPTIONS TRADING MVP
Many options analysts say they have winning trades all of the time. They don't. I don't. But what I have is an uncanny knack for spotting cheap and undervalued options that have home run potential.
But an important question is: Are cheap options always good?
It's easy to find cheap options. There are hundreds and thousands of them that are priced under $2 ($200 per contract). However, to be successful, you must buy options that are not only cheap, but also bargains or underpriced options.
The vast majority of cheap options are overpriced or really just worthless.
My way and your way to success is to find cheap options that are also undervalued or bargains that should really be going for higher prices. When I find such bargains, the ability to predict what the underlying stock will do is not as important because the risk-versus-reward picture is so incredibly attractive.
The biggest part of my job is to identify options that are both cheap and underpriced or bargain-priced. Then I do my technical homework.
So what's the single key to options profits? Buy cheap AND undervalued options -- with home run potential.
You're going to take small losses, but the homers more than make up for them. Sure, slow and steady may win the proverbial race, but it's the spectacular plays that are going to earn us a one-way ticket to major-league profits.
I've got plenty of stellar pitches up my sleeves that I'm sending to my Maximum Options subscribers -- join us in this service for active options traders and get up to 10 trades per week! Click here and start making options home runs of your own!
Don't let great trades get away. If you enjoyed this article, check out Ken Trester's "Generate Substantial Returns with Smart Bets."
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Enhance your chances of turning a win into a winning streak with these 'tricks of the trade.'
Leverage Your Options Investments
Learn how to properly wield the power options provide to keep your trading account in-the-black.
Use Trailing Stops to Protect Option Profits
Traditional stop-losses help you cut your losses, but trailing stops help you to keep your profits.
10 Commandments: Buying and Selling Options
Limit your risk when trading options. Learn Ken Trester's 10 commandments to ensure you bank money in both bull and bear markets.
Boring stocks are for buy-and-hold investors. When you're buying options, you want stocks with some serious 'get up and go.'
