Best option stocks to trade


So I learned first hand how much it can cost you by not following each and every one of the 5 rules above. Again this means when you buy an best option stocks to trade make sure you leave yourself enough time so that your option does not expire before the catalyst or event occurs. Meaning divide the price of the stock by the actual option price. Now I will give you a real life example of an options trade I just made, where I only followed 2 of the 5 steps and it cost me dearly best option stocks to trade my trade. So in summary only buy an option when there is catalyst or event that will dramatically alter the price of the stock.

But there is one Billionaire I met best option stocks to trade my hedge fund days that I will never forget, because he was one of the best options traders I have ever seen. So I learned first hand how much it can cost you by not following each and every one of the 5 rules above. Meaning do best option stocks to trade buy an option unless it meets each and every one of the 5 rules. To make it easy for yourself print out these rules and then before you trade an option make sure that you can check off each rule before you buy the option.

Simply stated only buy an option when you have at least a 2 to 1 reward to risk scenario. If you do this I promise that not only will you greatly improve the success of your options trading but you will make a lot of money in the process as well. Meaning divide the price of the stock by the actual option price. So in summary only buy an option when there is catalyst or event that will dramatically alter the price of the stock.

So in summary only buy an option when there is catalyst or event that will dramatically alter the price of the stock. This may best option stocks to trade confusing but its the same premise value investors use, they buy stocks when they are cheap in comparison to what they historically sold for, so you want to buy options when the volatility is low or lower than what it historically has sold for. But there is one Billionaire I met during my hedge fund days that I will never forget, because he was one of the best options traders I have ever seen. Also if you have options software, you can compare the stock and its options implied volatility and underlying volatility best option stocks to trade its historical implied and underlying volatility. So my lesson to you is not only are these 5 Rules for Trading Options important, but even more important is that you make sure before you buy an option that you have followed each and every one of the 5 rules I stated above.

To make it easy for yourself print out these rules and then before you trade an option make sure that you can check off each rule before you buy the option. So I learned first hand how much it can cost you by not following each and every one of the 5 rules above. Meaning divide the price of the stock by the actual option price.