Trading Stocks and Options as a Business
This Options Education Video will Introduce you to the art and science of trading stocks and Options as a business - I hope you enjoy this options trading strategy.
Options Trading Strategy
There are two options trading strategies covered in the Trading Pro System Options Trading Course
1. There's a monthly income strategy that we call "money every month".
2. The second options trading strategy is the strategy for "massive market profits".
First I want to talk to you specifically about the program itself, what it hopes to achieve what the objective of the course is.
The objective of the programs first part (the money every month strategy) is to generate - just like it's called - "money every month".
We want to generate a consistent income on a monthly basis from our trades so that - just like any other business - we want to generate recurring consistent monthly income.
Does that mean we are going to be profitable every month? Maybe not, maybe we will...the important point to think about is that we really want to have a monthly income stream.
In order to generate that monthly income stream we are going to use options as our primary trading vehicle.
Now every business manager manages their business based on numbers and that is exactly what we're going to do in or trading business.
This is a real business.
It's a business in which you are buying and selling.
Any business buys and sells things and it doesn't matter what it is. It could be a bakery, it could be a auto repair shop, it could be a parts store, it could be a gift shop.
These businesses have to buy stock from some place and then sell it to a customer.
The very same thing happens in the financial market.
You're buying and your selling (trading).
Example of Trading stocks and options as a business.
Let me give you an example of how we actually try to make money in the market's trading stocks and options as a business.
All we're really doing is meeting supply and demand.
Let's take for example a stock such as "Activision" which I have on my options trading software screen right now.
The symbol for the Activision stock is "ATVI".
It's currently trading at $27.23 today, down 27 cents from yesterday.
Now for the most part are you have people in the stock market who believe that "ATVI" Activision stock is going to go up.
You have other traders who believe the stock is going to go down.
And that is what makes the market.
Let's take a look at the available options on this particular stock.
We have call options and put options.
Call options are those options that traders purchase if they think the stock is going to go up (stock price increase).
Traders purchase put options if they believe the price of the stock is going down.
Let's take a look at what is called an "at the money option".
These option contracts expire in 24 days.
The 27.5 for $27.50 options if you wanted to purchase a call option on the stock because you believe it's going to go up in the near future you would be purchasing this option for 45 cents.
If you thought the stock was going to go down you would be purchasing this option for 80 cents.
Now you could try to yet another a price that was in the middle of the bid and the ask price and maybe you'd pay 70 cents but the point is that you have to buy these options in order to fulfill the idea that you have - that the stock is going to go down, or the stock is going to go up - so in case you think that the stock is going to go up you would purchase this call option from the list of available options for the activision stock expiring in the month of may.
And you could get it at 40 cents, almost in the middle of the bid and ask prices.
This option actually has no real value because the current price in the stock is $27.20.
So not only do you have to be accurate as to your timing because the stock would have to move up quickly in order for you to make money but you also have to be accurate as far as direction goes...the stock has to move up in order for you to make money from this options trading business...
This is how we generate monthly income from the market's:
By selling options to people who want to buy them.
And it doesn't matter to us if the stock goes up or the stock moves down, we make money both ways.
This Video is part#1 of the Trading Pro System member introduction - We also offer the Winning Trade System - Options Trading Course, which is designed to offer Huge Potential even on a $5,000 trading account or less.