Are you looking for a new form of investing that can 10x your portfolio in a matter of weeks?

Well, you need to look elsewhere, because option trading isn’t like what you see on Wallstreet bets.  Sure, you can “Beat the Market” but, without understanding the basics of option trading, you will set yourself up for failure.  The bright side to this gloomy opener is that by reading this article, we can show you how to better understand the world of options and become a better trader that can beat the street.

So, what exactly is option trading?

Option trading is the trading of contracts that give you the right to buy or sell 100 shares of the contracts underlying representation.  So, say there is an Apple options contract that represents a price of $150.00 selling for $4.20, this means that buy paying $4.20 per share, you can own the right to purchase 100 shares of Apple at $150 per share.

Are you asking, “How does this make any sense?” Well, we will show you.  Imagine you want to ability to control 100 shares of TSLA listed at $200.00 per share, but you don’t have the $20,000+ to purchase those shares.  However, you notice that you can purchase option contracts that represent 100 shares of TSLA stock at $2.00 per share. So, for $200.00, you control the value for 100 shares of TSLA.  If it moves up $10.00 in value, you know own the right to purchase 100 shares of TSLA at $20,000 vs the value of $21,000 it would be at after the $10 dollar move.  That equals out to a $800.00 profit from a $200.00.  In other words, you 4x your initial investment.  If you were to just buy the stock out right, you’d only make a $1000.00 return on a $20,000 investment (5%.)

Is it too good to be true?

Well, yes and no.  Option trading is a very powerful tactic that utilizes leverage.  If you are correct on the trade, you will set yourself up for trades that 2,3,4…10x your profits.            However, leverage works both ways.  If you are wrong on a trade, you will set yourself up for tremendously losses.

How do I find the right trade?

Getting the right information at the right time is key to finding the right option plays.  Understanding option flow, technical/fundamental analysis, dissecting earnings reports, and tracking insider buying are the keys to finding winning option trades.  TradeUi in a website that has all these tools in one handy location.  Track stock news, earning dates, when insiders are buying/selling, and stay on top of option flow that shows when millions of dollars’ worth of option contracts are being purchased!  They also have a YouTube channel full of tutorials on how to use the site and give yourself a trading edge.  If you are ready to take the next step, check out their 2-week trail and see TradeUI is the missing key to your trading kingdom.

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