Larry’s Note: The market is in lunatic land. New highs keep hitting, and many people are cheering the rally on. They buy high… and pray they can sell it even higher.
Bottom line: The market is a minefield for buy-and-hold investors. At some point, we’re going to see a correction… and I believe it’s going to be a big one.
That’s why I’m going the opposite way. I don’t chase moonshots that have already left orbit.
Instead, I use ONE ticker for a shot at more gains in a ONE day than the S&P 500 typically delivers in an entire YEAR. Over and over again. And I do it without ever buying, selling, or holding a single stock.
Anyone can learn to do this. That’s why on Thursday, May 7, at 8 p.m. ET, I’m showing you the way… including the ONE ticker that makes all the difference.
Click here to save your spot automatically and find out more.
What New Traders Get Wrong About OptionsBy Larry Benedict, editor, Trading With Larry Benedict When folks start trading options, they often approach their trades the wrong way. They focus too much on the option’s breakeven at expiration. They incorrectly assume that the stock has to hit that level to work. Take, for example, someone who buys a call option with a $100 strike price for $10. (That gives them the right to buy shares at $100 right up until the option’s expiration.) The stock needs to get to $110 before the option’s expiration for them to break even on the trade. That’s the option’s strike price ($100) plus the cost of the option ($10). This might all seem straightforward in theory, but the truth is that option buyers rarely hold options until expiration. So today, let’s check out factors I consider when buying an option…
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$1 Million to Access This. Now Free. For decades, “Market Wizard” Larry Benedict’s method was reserved for hedge fund clients investing $1 million minimum. Now he’s giving it away. Free. This isn’t a stock pick. It isn’t a moonshot. It’s a 40-year-tested method that profits from market movement, not direction. It’s how Larry went 20 years without a single losing year. And how he’s delivered 18 winners out of 21 trades in 2026 so far. Larry’s trade alerts have produced single-day gains of $149… $189… $250… $1,250… or even $2,500 during the worst whipsaw markets in years. With one ticker. Without buying, selling, or holding a single stock. On Thursday, May 7, at 8 p.m. ET , Larry’s showing everyone how it works. Click here to automatically reserve your seat.
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The Way You’ve Been Building Your Wealth Is Working Against You In 2022, the last time the Fed made a major shift, the 60/40 portfolio had one of its worst years on record. Bonds collapsed, stocks fell… there was nowhere to hide. Larry Benedict saw it coming. He went 11-for-11 while most investors had no idea what hit them. He says the same pattern is setting up now – on a much bigger scale. Click here to hear his warning and find out the one move he’s making instead.
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Defined RiskOne of the reasons I’m so passionate about options is that they enable me to tightly control my risk. With options, my risk is clearly defined. When I buy an option, the most money I can lose is the premium I paid. But even though your risk is capped when you buy an option, it might be more than you’d really like to lose… An option contract is for 100 shares. So if you buy one option contract at $10, you run the risk of losing $1,000 if the trade doesn’t go as planned. For some people, that risk is too high. In fact, my preferred level of risk sits around $3 (or $300 per option contract). To achieve that, I need to adjust the strike price for the options I buy. In the case of a call option, I want a strike price that’s further away (higher) than the current market price. So instead of buying the $100 call option, I might buy a call option with a strike price of $130, for example. And here’s the key: I can profit even if the stock price doesn’t reach $130. There are other important factors in play…
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Each week, Market Wizard Larry Benedict goes live to share his thoughts on what’s impacting the markets. Whether you’re a novice or expert trader, you won’t want to miss Larry’s insights and analysis. Even better, it’s free to watch. Simply visit us on YouTube at 8:30 a.m. ET, Monday through Thursday, to catch the latest. |
Understanding Your Trading GoalSeveral factors drive an option’s value – the primary one being the underlying stock price. If the stock price rallies, all call options typically go up in value, though not at the same rate – and that distinction matters. The farther away the option’s strike price, the less sensitive the option is to the underlying stock’s move. However, if you get the stock’s direction right (in this case, up), you can still trade these higher-strike options for profit. That’s because another major factor is volatility… When volatility picks up, it increases the value of option premiums. This compensates option sellers for the extra risk they’re taking on. (The more the market moves around, the higher the chance sellers have of being exercised.) A ramp-up in volatility typically affects all options valuations. Even an option with a higher strike price can still benefit when volatility rises. So we can buy a “cheaper” option, and we can still turn a tidy profit. The goal is to capture an up move in the underlying stock along with an increase in volatility. If we get that right and close our trade out for a profit, we don’t need to worry where the stock is trading at expiration. By then, we’re already out of the trade. So when you consider buying an option, make sure you understand your goal. Then choose your option’s strike price accordingly. Even an option a long way from the current price action can be highly profitable if you catch the right move and rising volatility. The trick, as always, is to find the right balance between risk and reward. Happy Trading, Larry Benedict
Editor, Trading With Larry Benedict
Free Trading Resources Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out. |
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