by Ken Trester 06/13/08
In my Fast Options Profits trading newsletter, we focus on simple, straightforward call and put option buying. With this type of trading you have one huge, one undeniable advantage -- you can make profits like no body's business -- 100% to 500% in just a few days and not risk all that much money.
Well OK -- you have another undeniable advantage: You can make the same profits in a bull or bear market. I just love that -- making money in a down market when everyone else is running for the hills!
But ... you know there is another way to make money with options that few of you know about. It is one of my favorite techniques and one I do in my own account with regular success!
What is it; what's the secret? Well let me tell you this -- not many traders follow this strategy but it really rings up the profits on a regular basis.
This secret advantage to winning at the options-trading game is selling options! It's a technique that generates regular income because you collect money the moment you initiate the trade.
You can actually sell options (after all, the ones you are buying need to be sold by someone). And believe it or not that someone can be you!
And when you sell options, you have a high probability of winning no matter what the market or a stock does.
In fact, you can sometimes enter a trade that has a 99% chance of winning. In a sense, at times, they are giving money away on the exchanges.
The options market is unique -- you can make money here, there, almost everywhere!
The option markets provide that rare opportunity for you -- the individual investor -- to be the bank, the "house" or perhaps the equivalent of a legal bookie.
Cheap Options Aren't Always a Smart Buy
We love the profit potential that comes from seeing an inexpensive option play skyrocket into a big winner, but some options are cheap for a reason.
Boring stocks are for buy-and-hold investors. When you're buying options, you want stocks with some serious 'get up and go.'
Diversify Your Options Universe
Diversity makes the world go 'round, and the same is true of your portfolio.
The less you spend on your options trades, the bigger your profits can be. Today we talk about how to get big payoffs for less money.
Trade Options with 'Fun' Money
Options can be so inexpensive, it's hard to remember that you're playing with 'real' money.
