Is Options Trading Profitable?
There's one main question every beginner asks: "Is Options Trading profitable?"
Unfortunately, the answer is it depends.
First, there are many different variables that are unique to each individual which will affect the outcome.
And then, there are many different ways to trade options, although simply buying options or selling options are the two general strategies.
"Sell, Sell, Sell Options," Says the Guru
Most online Options "Gurus" lead people to believe that selling options is the best way to trade them. And why not? Selling options is easier to teach, has an alluring pitch, but often comes with great (unmentioned) risk.
These "Gurus" have twisted several facts into a narrative that isn't true and is actually quite dangerous. These facts are:
- Options are a decay asset.
- You can sell certain options and win a very high percentage of the time.
- Implied Volatility is generally higher than Actual volatility (In plain English, they are Expensive).
While true, these 3 facts form a narrative that goes something like this:
"Profit on 70-90% of options trades by selling them. Learn why they are inherently expensive and take advantage of the fact that they decay in value every day."
- Fake Online Options "Guru"
I'm sure you've heard this pitch. It's quite enticing, but you aren't hearing the full story.
Some "Gurus" even go as far as saying that Fact #3 is your "Volatility Edge."
This is absolutely not true!
And anyone saying this is being incredibly irresponsible to unsuspecting investors. So, be aware of these "gurus" because they can cost you a ton of money and waste valuable time.
The Truth is Most of the Top 1% Buy Options
While investors can buy or sell options, the truth is that buying options offer a much bigger opportunity to profit.
In fact, that's why most of the Top 1% buy options. They understand how powerful the product can be if you understand how to use them.
Unfortunately, this is where Options education fails you. Investors looking to buy options are left confused and frustrated with simple questions that the industry doesn't answer.
I built the best options trading course on the market, 3 Steps to Profit, to give you those answers.
So, is Options Trading profitable?
There are many ways to use option. And to be clear, investors can be profitable buying or selling options. However, at OptionsGeek I focus on teaching investors how to buy options simply because I know that the Top 1% buy options.
Now, here's a quick video that tells you the 5 requirements you'll need to be successful at Buying Options just like the Top 1%:
5 Requirements to be Successful at Buying Options
Options are a tool that provide Leverage.
Leverage is what turns $1 into 3, 4, 5 or $10 or even more.
When you buy an option, you're buying leverage.
How you manage that leverage is important.
To be profitable at Buying Options, you need to correctly assess these 5 things:
- Direction of the Stock
- Magnitude of the Move
- Timing of that Move
- How to Choose the Right Option
- A well-thought out plan of attack
Each of these represent a risk to you.
The good news is that you don’t have to be perfect on #1 and 2.
You can significantly minimize your risk on #3.
But, #4 and #5 requires someone to teach you.
In fact, #4 is the toughest question in options.
And here’s something incredible, the industry doesn’t offer an answer.
In fact, it avoids the question. I’ll even show you proof in my Free book “The Options Answer.”
But that’s not even the shocking part.
Guessing at #4 leads you to Guaranteed Losses.
So, my advice is… Don’t Guess.
At OptionsGeek.com, I created a comprehensive Options Platform that offers you the best Options education, a simple yet powerful tool that gives you the answer, and high probability trading ideas that can make you money.
Check out the Options Tools and try the patented New Options Chain right now! CLICK HERE.