Top 5 Stock for
Trading Options
Options can be intimidating for new traders. Especially in times like these, with inflation and interest rates rising, tech stocks dropping, and oil and gas prices on a rollercoaster. Many don’t know where to start. But they don’t have to be. That’s why, in this guide, I’ll show you:
I’ve also added a special bonus, my Options Trading Checklist, to the bottom of this page. Before you place your first trade I recommend going through that 10-point checklist to be sure you’re putting your best foot forward for success.
Now, for those of you who don’t know me, I’m Jay Soloff.
I’ve spent over 20 years in the financial markets as a floor trader, an options market maker, a hedge fund analyst, and now a professional options educator.
Frankly, I don’t believe anyone knows more about options than the “invisible hand” pulling the strings behind the market. That was me – the market maker, or “Mr. Options” as one multi-million-dollar portfolio manager called me.
I want you to know where I come from so you have a sense of how I might look at the market a little different from your average so-called “options expert.” (There’s a lot of amateurs out there posing as “gurus.”)
We’ll get started now with the basics, and feel free to skip ahead if you’re an old pro.
So, first things first…
An option is a contract that allows its buyer the opportunity (but no obligation) to buy or sell a stock at a particular price – the “strike price.”
A “call option” is a bet that a stock will rise in price. It allows its holder to buy the stock at the “strike price” within the specified time-frame (before expiration).
A “put option” is a bet that a stock will fall in price. It allows its holder to sell the asset at its “strike price” before expiration.
Options offer a high-leverage tool for speculating on expected price movements.
If you’re a beginner, check out my Extra Cash Masterclass for Options. In that comprehensive video training you’ll learn:
I’ll even show you how to make up to $1,135 extra every month, from scratch – as well as give you the opportunity for weekly option trade ideas vetted by me. Click here to learn more.
If you already have a stock account but are not trading options, you can use the account you already have to trade options.
If you don’t have an online brokerage account, you may want to choose one that has low fees for trading options. Many now offer commission-free stock trading and low-fee options trading. When you trade cheap options, which are my favorite kind, you especially want to watch the fees.
For more on how to trade cheap options and turn that into potentially hundreds of dollars – one of my favorite options strategies – take a look at: How You Could Turn “Extra Cash” Lying Around Your House into Thousands of Dollars in as Little as 23 Days.
I don’t offer broker recommendations but a simple internet search should give you lots of easy options.
Once your account is set up (should be easy), on many brokerages you’ll navigate to the “Trade” tab and drop down to “Options.” You should find information on the various levels and an application for approval.
Apply to trade options. Level 1 will suffice for our type of trading and approval is easy at this level.
So now that you are ready to trade…
Start with choosing a stock.
To choose a stock I start with my 5-point Options Floor Trader Pro criteria.
So, now you know:
So here’s the main event – what you signed up for.
So there you have it – my 5 best stocks for trading options.
But knowledge without action does not make for fast profits (or any profits)!
So it’s time to hunker down for an hour, set up your account if you don’t already have one, and place your first trade.
If you don’t know how to get started, don’t worry. I highly recommend every trader, new and old alike, take a look at my Extra Cash Masterclass for Options. You’ll not only learn the finer points of trading options – you’ll get ongoing support and trade recommendations from me. Click here to learn more.
And remember, you’re not flying blind – as promised, here’s my fast-action bonus: The 10-Step Options Trading Checklist Every Trader Needs.
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The information in this email and corresponding websites are neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. is neither a registered investment adviser nor a broker-dealer and does not provide customized or personalized recommendations. Past performance is not necessarily indicative of future results. No trading strategy is risk free. Trading and investing involve substantial risk, and you may lose the entire amount of your principal investment or more. You should trade or invest only “risk capital” – money you can afford to lose. We urge you to conduct your own research and contact your personal financial adviser before making any investment decision.
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