Options vs Stocks
DoInvestors use options because it is more profitable to trade in options rather than stocks. You will learn how you can easily make 10% to 100% compared to stocks. You will learn the process by following our tutorials and methods. We will show you exactly how you need to think and read the market to invest your money and gain significant returns.
Advantages of Options
Comparison between stocks and options
Buying Option Contracts allows you to make profits quicker and with a lower capital compared to stocks.
Investing with stocks:
Buying a SPY stock on June 4th would cost you around $276. Your initial investment is $276. When the market closed on June 7th, the stock price was 287.50.
Your profit was: $287.50 – $276 = $11.50. Your rate of return was = 4%.
Investing with options:
A SPY Jul 19. 190 Call contract on June 4th had a premium price of $1. Because this contract controls 100 shares of SPY, your initial investment is $1 x 100 shares = $100. When the market closed on June 7th the premium price had increased to $4 ($4 x 100 shared = $400).
Your profit was $400 – $100 = $300. Your rate of return was = 300%.
Let me ask you something: “How often has it happened that you have lost sleep, due to a large amount of money invested in a trade that increased your stress level”?
Our strategies of trading does not require long term investments. You have the possibility to complete a trade in less than 20 minutes. Choosing to invest in option contracts involves some risk. If you follow our advices, guides and courses you will gradually lower your own risk when trading with options. As time progress you will become more and more confident in yourself and your trading, which in turn will lower the risk further.