Although options have been around for more than 40 years, they are just now starting to trend and become popular. Many investors avoided options because they believed they were too difficult to understand. But now more people are interested and are asking why buy options? I will discuss in this article why options are the way to go and invest. I am confident at the end you will be yearning to learn more and join my MK VIP program.
Research shows that 70% of Americans say they are struggling financially. 7 in 10 Americans struggle with at least one aspect of financial stability. About 1 in 5 middle-class workers are spending more than they earn. About 20 % of women reported that there are stressed by money, and 13% of men shared this feeling. When people are needing more money; they search for ways to generate income. This search has led people to explore buying options and buy stock.
What Are Options?
A call option gives you the right to buy a stock (not the obligation) and a put option gives you the right to sell the stock. If you believe the market is trending upwards, you would purchase a call option. If you felt the market was trending downwards, you would purchase, and put contracts. You would then sell your options contracts for either following your strategy or minimizing a loss. Trading options is best to think of it as the probabilities of future price movement in the options markets.
The Misconception
Options are more complex investments than stocks. Owning stocks gives you partial ownership of a company. Buying an option contract grants you the right to buy or sell the underlying stock. Options have a defined expiration date and are designed for short-term positions. Stocks are commonly held by many investors for years and can be owned forever.
If you were to grab a power tool that you’ve never used before; most likely you would get hurt or wouldn’t even be able to figure out how to use it. This same analogy can be seen with trading options. Traders have had bad experience with options because they nor their brokers were properly trained. But if you were to take the time and learn how to use the power tool or ask for help; you would be able to use it without a problem. The same applies with trading options; you need someone who is knowledgeable in that area to be successful. If you don’t use the proper strategy, you can lose all your money.
Advantages of Options
Options are low cost in comparison to buying regular stock. For example, to buy 200 shares of a $100 stock, an investor must pay $20,000. However, if the investor were to purchase two $316.40 calls (with each contract representing 100 shares), the total cost would only be $632.80 (2 contracts x 100 shares/contract x $316.40 market price). The investor would then have an additional $19,367.20 to use however they see fit. Now that you got the numbers down, let’s talk about what else is needed to get this going.
A lower stock price is great and for beginner investors, you can start with just purchasing one options contract. As you get better, you can increase contract size as long as it works with your budget. Keeping your contract size low helps minimize significant risk and your capital. You will need option strategies to know when to enter and exit the market and walk away with a profit. I have made it my goal to help experienced, and inexperienced investors learn how to make options a way to generate income. You won’t need fancy interactive tools, just strict guidelines to help keep you trade options. With the MK VIP training program, you’ll get the one-on-one hands-on training you need to build confidence and be proficient at trading stock options.
You might have needed a calculator to do the math earlier, but you don’t need one for the following. If you spend less money and make almost the same profit; you’ll have a higher percentage return. Options allow most investors to trade not only stock movements but also the passage of time and movements in market volatility. Most stocks don’t have large moves most of the time. Only a few stocks actually move significantly, and they do it rarely. As an options investor, you have the potential to have higher percentage returns and do it quickly. You can literally make hundreds and thousands in profits within minutes. It is simple math the more contracts you buy then the more money you can make as active investors.
Summary: Why Buy Options
You have learned that people are interested in ways to earn additional income, so they have placed their focus on buying options. With options, there are ways to keep your risk low and the potential for gains is high. You learned the misconception of trading options and are now familiar with the advantages of the options market. It is evident that you don’t need much for your initial investment to get started, and that a strategy is needed for options trading. You only need one core program, and you are in luck because you found it. The MK VIP training covers all of your trading needs, helps you identify your risk tolerance, provides you with a trading plan, and teaches you how to analyze market data.
There is no need to focus on more than one stock. If anything, focusing on just one eliminates distractions and helps you get focused. The MK VIP training has plenty of resources to help you get started on reaching your day trading goals. You will learn the ins and outs of options trading. After you complete the program, I provide you with lifetime access free of charge to different articles on trading. I do this to ensure you are always keeping sharp, learning more and know that you are supported in this journey to financial freedom.
Learn More
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”
