Asking how much money can you make trading options is kinda like asking how many licks does it take to get to the center of a Tootsie Roll.
You probably won’t like the answer very much.
Options can make you a ton of money but there is no set figure on what you can and cannot make as there are so many variables that affect actualized profits from trading options.
Some of these variables are the strategies themselves. Buying calls and puts are awesome because profits can be unlimited and the sky’s the limit, while other strategies like credit spreads have a capped profit.
The Greeks, like Gamma, play a huge role in the profit you will realize as does time decay. Novice traders are always amazed and disappointed at how the stock can be trading in the direction of their position and yet the time decay is eating away their profits faster than they are accounted for. In the money, at the money, and out the money options also have an effect on the profits you eventually realize.
As with everything, there is an equal and opposite reaction so while there’s no doubt you can make a lot of money trading options, without proper trading education and a solid trading plan, you can also lose a lot too.
The key to success with options is keeping your trades consistent and trading them persistently.
You need to learn how to trade stock options successfully before you put a penny into the market otherwise you will fail and you’re just giving your hard-earned money away. It’s like any other skill or challenge; you learn how to do it first before you take part.
Make sure you set yourself a trading plan and educate yourself to have the best chance of success in your new endeavor. Trading U provides you with a solid understanding of trading options; how they function, charting and the more common indicators as well as Fibonaccis. When you enroll in Wealth Builders HQ Trading U, you learn the topics you need to know that will empower your trading success. And each month, 2 new instructional videos are added to the library so you stay current and on top of the markets. Now that’s an investment that continues to grow in ROI.
Register today and get started on making a living trading options.