I learned options late in life, by accident, by searching the pages of the ancient magazine Exchange and March 1995. The whole article showed how an options trader can work from home, (actually in bed) using prices from the BBC’s teletext, back in the day. A lot has changed, but options have existed for centuries before dating, and are used to determine the price of a ship’s cargo. In the 1980s, options were traded on the stock market and wealth was created. Warren Buffett is a keen options trader, Nassim Taleb was the most prolific. They’re not idiots, and neither are you if you’ve read so far.
Investment is the word we use for a trade that has gone wrong! The investment is mostly passive and requires you to be right and / or store inventory for decades. With markets reaching new highs and stretched estimates, you need to understand that the stock market cannot continue to grow. If you’re happy with the slight dividends and the certainty that at some point in the future your shares will be worth half as much as they are today, then don’t read any further. QE is no longer on the table and that’s all that separates inventory from realistic estimates.
So, what is it really about? In our world, we only trade FTSE100 options. Why? Because it is unlikely that the entire index will be arrested for fraud / sexual harassment / fake bookkeeping / poisonous products and all the other bastards who can destroy a company representative at heart. Thus, FTSE is the foundation on which our derivatives are based. Options are the right to buy or sell the underlying material (the price changes on the stock exchange of GBP 10 per cash, but NOT the obligation. However, in the same way that insurance companies collect premiums, options can be sold. Have you ever seen a bad insurance company ? When you understand everything correctly, sales options can consistently bring you a monthly revenue stream of a comfortable 2% per month.Nothing else comes close.
So who are the option buyers if everyone sells them? Well, that’s most of the education and the reason I’ve been trading profitably since 1999. Yes. I had failures and panic – but I made good money in February, while the market fell 10%, even though it was a little weak! I learned about the options from an expensive course and from most free online trainings. Some time ago I met a like-minded options trader, he runs a website that I contribute to every week, with real trading and general stories about our world. You will be completely amazed when you begin to understand the options and endless combinations and the 20 or more strategies we use. I love options trading and want to reach out to those with a pot of money looking for income and a reasonable risk management method but who don’t know where to start. It’s not just about beginners – there is insight for everyone. And we do not you want your money.