5 Reasons to Trade Options

iron-condorI love trading options. It’s more leveraged than stock and can make you a consistent 10-20 percent per spread with limited systemic risk and multidirectional trading strategies. Since I am a huge fan of trading options, as I usually post it as my trade of the week, I decided I’d get my blog readers started on it too. To give you some inspiration on why trading options is such a great deal and can make you plenty of money, here’s a list of my top five reasons to trade options:

1. Options are leveraged. This means you can control a great deal of profit with a smaller investment. It’s not unrealistic to get a 10-50 percent profit in a few weeks or even days trading options spreads, but the same feat with stocks might be quite difficult and require a lot of sketchy speculative tactics for predicting price action.

2. Options carry limited, calculated risk. In an options spread, you know your exact amount of risk in every single trade. Rather than guessing at how much you could lose and why, options trading will give you a consistent calculation of total potential risk in a trade. You know how much you risk no matter what.

3. Options offer multidirectional trades. Whether the underlying goes up, down or sideways, there are any number of options trading strategies you can utilize to make money.

4. Options can be traded at the end of the day without having to sit at your computer for hours at a time. A good, experienced options trader can place a few trades per week and still generate plenty of profit with just a few hours of work per month.

5. Options are easier to learn and faster to get started with than you might think. If you need some help, check out the instructional videos on my youtube account or read some options articles on my site for detailed strategies on what options are and how you can trade them.

Does options trading sound like something that you’d like to get started on? My suggestion is to get started on a system. The best one I’ve seen and for the most reasonable cost has to be Trading Pro System. I’m demoing this product and will be putting updates on my blog for people who are interested, but this system is filled with amazing trading strategies, many of which I feature on my website and use in my own trading.

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