Why You Should Be Excited About Option Trading.
There is ONLY 1 Reason
But that reason is so compelling. I am going to illustrate with current real data so you can clearly understand the reason.
Let’s pick a company everyone is familiar with like Microsoft. It is a good company and it stock continues to go up in value. And as you can see from the year chart it is just ready to bust up again. Just a year ago MSFT (the stock symbol for Microsoft) was trading at $157.41. As I write this article it is trading at $221.54. If you had held the stock for a year, you would have $64.13 per share. That’s a 40.7% gain. Pretty darn good!
Let’s Look at the Same Trade Set Up Stocks Vs Options
Joe Blow’s Trade
Joe Blow is going to purchase 100 Shares of Microsoft today and he intends to hold them until the Price is up to $275. He believes this will happen in about 6 months. His expected trade:
Purchase 100 Shares $221.54
Sell in 6 months when price reaches $275.00
Joe will realize a gain $ 53.46
His % percentage gain 24.1%
Sweet Sue’s Trade
First you need to see the Option Chain. Here is a picture of the options available for September 16, 2021 – 10 months from now. Sweet Sue is going to buy a CALL option right where the price is now trading. She will pay $32.73 per share
Purchase 1 Contract (100 Shares) $ 32.73
Sell in 6 months when price reaches $275 $ 48.75
Sue will realize a gain $ 16.02
Her % percentage gain 48.9%
Who Made the Better Trade – Joe Blow or Sweet Sue?
Let’s Compare: JOE BLOW SWEET SUE
Total Spent to Open Trade $22,154 $ 3,273
Profit Upon Closing Trade $ 5,346 $ 1,602
Now the exciting part - % gained 24.1% 48.9%
Joe did make more profit in actual dollars, but he had to spend a lot more than Sue. And his return percentage was half of Sue’s.
If Sue had spent the same $22,154 to open her trade, she would have earned $10,845.
If you took the time to weed through this illustration, Congratulations! You are on your way to being wealthy. There is a learning curve to understanding how to trade options. In a month I can get you there and you’ll be on your way to making the kinds returns I do year after year.
This Free Treasure Map will give you step-by-step instructions for a simple trade that usually nets me between 50% and 75% returns in just a few days. Where should I send it?