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Hey y’all,
Happy Monday.
Today, I wanted to offer some encouragement to folks.
If you caught my interview with Graham Lindman last week, you heard him address the common trading myth “call options are the best kinds of options.”
I think the point he’s making is critical.
So I’m going to revisit it today if you’ll allow me to.
(Well, I guess I’m gonna do it either way… but I hope you’ll keep reading!)
Call options are a great weapon in the stock market.
If you’re expecting a stock to go up, and you want to maximize your returns with less money, call options can be your greatest weapon.
Some strategies are designed to take advantage of repeating uptrends in a stock. For these setups, call options are unbelievably powerful. Traders can and should take advantage of them.
My point isn’t at all to dismiss call options as a viable way of trading.
But I do think we need to defeat the idea that call options are the only smart way to trade — especially for beginners.
Because there is a mythology out there that call options are safer/smarter/easier than other kinds of options. And to me, that’s ridiculous.
Call options actually are not any safer than, say, credit spreads, which most of our traders at ProsperityPub love.
And these days, they’re not any easier to set up, either.
But even more important than simplicity, call options simply aren’t versatile enough to give traders everything they need in today’s crazy, volatile, and unpredictable markets.
You need to learn strategies that will give you options — a range of outcomes, more controlled risk, less cost, that sort of thing.
As Graham demonstrated in our conversation, his wrap orders let him make big returns from a relatively tiny move in the stock, something call options can never allow for.
You need to pick the strategy for the specific outcome you’re trying to anticipate. But sometimes, you can’t anticipate the direction of the market… and I’m learning there are even strategies for THAT!
One strategy I’ve learned a lot about in the last few days is Nate’s Ford vs. Tesla strategy. Today, Nate & I are sharing the whole thing with you at our LIVE briefing.
Nate’s whole philosophy is based on playing two related stocks in a unique way, so that he should be set up for success if the market makes a big move in either direction.
And while that might sound “pie in the sky,” he’s actually had an 80% success rate doing it so far.
You can catch our presentation if you want to learn all about it, but let me tell you… it opened my eyes!
Because I always thought trading was just: trying to predict which way the market will go and trading accordingly.
But I’m expanding my horizons and thinking outside the call option…
I hope you will, too.
To your Prosperity,
Stephen Ground
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