12 Keys to Trading Earnings for Profits
Chris Johnson and Jon Lewis, April 16, 2009
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The Case for Trading Options in Your Portfolio
1. Limited dollar risk: It costs far less to lease the movement of a stock (either up or down) using options than an outright purchase or short of a stock. And the amount you pay for an option is the most you can lose on a trade. Thus, your potential maximum dollar loss is limited.
2. Leverage: This is probably the most-attractive and well-known benefit of options. For those who are pleased to capture a quick 10%, move in a stock, they often could have made 50%, 100%, or more by buying an option on that stock.
3. Accessibility: Option profits are available in virtually any type of market. Strategies of buying and selling options alone or in combination can produce sizable profits in up or down markets, trading ranges, volatile or non-volatile markets, etc. You name the market environment, and we're willing to bet that there's an option strategy that can profit from it.
Huge profits are yours with Chris Johnson's earnings season's strategies!
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