Options vs Stocks

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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

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Minimum capital

Investing in options requires a really low start capital, compared to stock investment, which requires a much higher capital from your side. For example: If we bought stocks in Apple Inc. (Symbol: AAPL) when the market opened on September 11th and sold them again when the market closed, we buy the stocks at $218 and sell them again at $223.50. If we instead bought an option contract we would buy the contract at $110 and sell it at $380. This example shows you exactly how investing in option contracts is more advantageous by being cheaper and more profitable.

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Minimum risk

There is always risk involved when you choose to trade with options. Working with options can be like driving a car. Obviously, if you do not know the basics you might crash, but if you know the basics and have a little practice and feel confident about it, you will end up as a good driver. This example can be applied to options trading as well, meaning that if you apply our strategies exactly as we suggest you do it and feel confident about what you are doing, you will end up as a very profitable investor.

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Choose your method

Working with options gives you the freedom to choose the style of trading you want to work with. You can combine a high return with high investments and risk or vice versa. You are the one who chooses the way you want to trade within your comfort. Options trading does not require huge start capital. You can start with only as little as $100. Choosing to invest in options contracts gives you the opportunity to generate higher and faster profits. Start options trading today to maximize your profit.

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%.

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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%.

Risk

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. 

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