Option Trading
The Simple Approach To Profiting From Puts And Calls

By keeping option trading simple we will cut through the jargon and debunk much of the nonsense that seems to be so prevalent among today's traders.

There are dozens of trading strategies. Many of them are complicated and bring back minimal returnes. We will leave those to the floor traders, they are the only ones who can profit from them. The commissions alone will eat up your profits.

Trading with puts and calls.... is no different than trading a stock or commodity.
You need to time your trade and keep it simple.
With that in mind we will concentrate on the
four methods that anyone can
put into action with a mimimum of time and
effort.

• Buying Calls ..... learn more
• Selling Calls ...... to learn how to sell calls click here
• Buying Puts
• Selling Puts

There are ways to combine any of the above, but for now we will consider only one of the above procedures at a time. We will look at ways to exploit the value of options, first by being a buyer of options and then by being a seller.

Using options is one of the most profitable forms of trading. Options are unique, so unique it is possible to make 10 to 20 times the cost of the option in a few days.

A friend of mine uses option trading to trade several times every month in the bonds. He waits for the price of bonds to go to an extreme low....... causing the 'out of the money' call options to get very cheap. He simply buys those cheap call options then waits for the price of the bonds to have a 2 day rally and gets out of his calls pocketing some very nice quick profits. On the sharp rallies he exacutes the same procedure with puts.....option trading isn't hard when you have a plan.

To find out what determines the price of an option? click here.  

The biggest profits the fastest... The absolute best possible way to make large profits is to buy calls just before a fast up move in the underlying asset.

It's not enough that the options are cheap...when option trading...your timing must be right on. It is our job as option trading specialist
to take advantage of low cost options, but only at the right time. Just because the price of an option is cheap, does not mean it is a buying opportunity.

Remember, the right time to buy call options is just before a fast up move. If your interest is commodities or commodity option trading you can learn how to buy low cost options just before a huge price advance by clicking here.

There is risk in option trading with puts and calls. Futures, Options, Stocks and Commodity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in Stocks, Futures, Options and Commodity markets. Don't trade with money that you can't afford to lose. This is neither a solicitation for option trading nor an offer to Buy/Sell Futures, Options, Stocks or Commodities. risk disclosure