Most options investors screw it up. They may just buy a call option and hope a stock will rally further, leading to huge profits. Or they buy a put and hope a company immediately starts filing for Chapter 11.
The fact of the matter is, stocks fluctuate. They may eventually go way up or way down, but it won’t be in a straight line. And knowing how to profit from more modest moves in a stock—the more typical daily moves you’re going to see over most of your investment life—is crucial for any options investor.
That’s where options spreads come in. This strategy uses two options in a trade instead of one. The goal is simple. To reduce your risk by reducing the cost of your trade. The cost of that? You cap your upside. But for stocks making a small move, it’s one well worth taking.
- Breaking News: Market Takeover In Effect (Claim your share!)
Goldman Sachs, JP Morgan, Citigroup, and all the big funds are getting pummeled by the all new Robinhood Effect sending some stocks to the moon...
Whenever a stock falls below fair value… the Robinhood Effect happens… and it happens FAST… and it could pay the likes of $1.83 million to regular investors.
For more details on how this strategy works, check out this video I just recorded.