Millions of rupees with Option Trading
Easy Cash Generating Option Strategy
Blueprint for Making Millions
Winning Trade Signal to Generate Millions
Overnight Millionaire is what you are looking for with options trading then this is definitely not the right place for you. It is true that over last few years the trends of options trading has significantly increased multi-fold times. But most of the people are doing the options trading in the wrong way. The reason we are writing this article is that we know many people who have a huge return on options trading but aren’t becoming wealthy.
The main reason behind this is that they trade option in a similar fashion of trading any derivative like futures. Most of them after some reading look at the unlimited risk and unlimited return and their traders are based on that only.
Basically, options trading consists of two parts similar to any derivative such as long and short. A long option is associated with unlimited profit and a short option is associated with unlimited loss. Most of the first time traders who have had bad experience with derivative trading or future trading strategy with going long options because of its nature of unlimited profit to see only that price of the option erodes faster without any reason,
Now after a few bitter experience, they realize that most of the option traders earn from shorting options and hence they change their strategy overnight from buying options to selling options. Option trading works similar to a casino it’s not much different from a casino. In a casino, they gamble or speculate for a specific outcome and option trading works in a very similar fashion for them. The probability of winners and losers in naked options trading is not much different from casinos.
Naked Option Trading
A naked options trading can be very attractive considering the number of potential winning traders. However, it should not be taken as easy money. Most of the new traders trade naked options without considering the risk exposure. That’s the reason option day traders get huge returns but are not wealthy.
The recent popularity of options trading is because of low margin required compared to futures and the brokerage. Most of the time people who come to trade option come from the fraternity of future traders were a very limited option of hedging is available.
Hence most popular if all the trading is naked options trading.
Types of Options
Options are classified broadly into two Call Option and Put Option. Call gives the buyer the right to buy the underlying asset while put gives the buyer the right to sell the underlying asset.
The exchanges have been continuously investing and bringing new types of an option to trade in such weekly, Mini options, Index option, Mini index options, Commodity options, Emini Options and Stock options.
Why Option Trading
It’s is very cost effective is the foremost and the primary reason. Secondly, it has very less risk entirely depending on how you use them. Option alone has the option of hedging and managing efficiently and an opportunity to adjust. It has higher potential return is offered to investors.
Finally and most importantly it allows more strategically alternatives of trading and adjustments for profit maximization.
It is very Important that you learn the right way to trade in options. Selecting the right Option Mentoring Course can save you lot of money and it can pay for itself.
You could also reduce your brokerage 3 WAYS TO REDUCE YOUR TRADING BROKERAGE
What to expect from Option Trading
Most novice investors are of the view that it can make them Millionaire overnight. It’s not true at all. Perhaps realistically what we can expect is that consistent and regular income over a long period of time. Based on the risk profile of the trader one can trade high-risk high-return strategies to low-risk low return strategies. Or a combination of both of them.
Get Rich Quick doesn’t work all the time.
Let me know in Comments if you have something to add.
Also published on Medium.