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Basics of Options Trading Explained

Have you tried to trade options but feel like you’re in over your head? Are the options trading gurus and industry experts skipping the basics and going straight to complicated topics and strategies?If you feel left behind when it comes to learning options trading, you are not alone. David Jaffee of BestStockStrategy.com has specifically designed a course to help both beginner and advanced traders learn the best options trading strategy. While many options trading strategies can seem overly complex, David Jaffee teaches his students to sell option premium without overwhelming you with unnecessary information. Because actual volatility is almost always less than the expected volatility, option buyers frequently end up with losing trades. The trades that they do win often do not make up for their losses.By selling premium, you can turn yourself into a casino or insurance company. Insurance companies collect a premium on a policy, which they get to keep regardless of whether there is a claim on the policy. Selling option premium puts the probabilities in your favor and allows you to better manage your risk. You can sell puts on stocks that you want to own and sell calls on stocks that you believe are trading too high. In either scenario, you collect premium and keep it regardless of the outcome of the options contract on the expiration date. It is important to note that there is no options trading strategy that guarantees a 100%-win rate. While you can win up to 98% of your trades by selling option premium, you will experience some losses along the way. David Jaffee teaches his students to remain disciplined and focused in order to avoid trading too large. Options have greater leverage than stocks, so trading too large can quickly get you into trouble. By enrolling in David Jaffee’s online options trading course, you will learn how to develop a watchlist of stocks.

Are you using the best options trading strategy?

There are a lot of options trading strategies out there, and not all are created equally. If your goal is to make money trading options, you will need the best options trading strategy. David Jaffee of BestStockStrategy.com has taught more than 1,500 students how to win up to 98% of their trades by implementing the right strategy and you could be next. First, you must decide between buying options or selling options. There are plenty of cautionary tales about traders trading too big or too often and losing everything. Choose the right trading strategy can help you balance your risk and reward to maximize profitability. While buying options has a defined risk, the probability of profit is relatively low.Options traders have a greater probability of profit when selling options. Buying options is similar to playing the lottery or gambling, but selling options enables you to act like the casino or insurance company. In fact, selling option premium is the best strategy to win almost every trade. By selling option premium, you can predictably and consistently make money in the stock market. Next, you can refine your strategy. David Jaffee recommends selling option premium to all of his students, specifically selling vertical credit spreads and naked puts. Selling naked puts is a simple strategy that can maximize the premium received and protect against trading too many contracts (although it also has tail-risk and uses up a lot of buying power). For many traders, selling vertical credit spreads may be more capital efficient. Vertical credit spreads have a defined risk, so you know the defined maximum loss when entering the trade. David Jaffee recommends against a variety of options trading strategies that some courses may promote, including straddles and iron condors, because they can lead to losses and significant mental stress. In addition to teaching a great options trading strategy, David Jaffee provides information on alternative strategies that may be beneficial in specific situations. You can learn about the wheel strategy and when you should trade it, when to sell covered calls, and when to use the collar option strategy. If you want to see better results when trading, make sure you are using the best options trading strategy. Visit BestStockStrategy.com to learn more about selling option premium and becoming a profitable trader.

Can you win almost all of your trades when trading options?

Perfection is almost always impossible, and that includes options trading. If a coach or course is promising you a 100% success rate when trading options, you should be very wary. There is no options trading strategy that guarantees success every time. If there were, everyone would use it, and no one would ever lose a trade. However, David Jaffee of BestStockStrategy.com can teach you how to win up to 98% of your trades. If perfection is not possible, what is the best strategy for option trading?Many think trading options is easy because you press a button and execute a trade – no physical labor, no hoops to jump through. But the real work is found in knowing when to trade (and when not to trade), how to structure your trades and knowing how large a position you should take.David Jaffee teaches his students how to sell option premium so that students don't repeat the same mistakes that he's made. By correctly structuring your trades, you can put the probabilities in your favor. While you won’t win every trade, you can maximize your wins and learn how to minimize your losses. Successfully selling option premium requires a lot of patience and discipline with every contract you sell at your chosen strike price. David Jaffee’s online options trading course can help you learn one of the best trading strategieswhere you can learn to win up to 98% of your trades. Selling option premium may be the best and safest strategy, but which option strategy is most profitable?“Safe” does not always equal “success,” but selling option premium can be safer and more profitable strategy. While your earnings may be smaller in the beginning, selling option premium enables you to build up your trading account and experience a high win rate.