A powerful investment tool… once the exclusive domain of the most experienced high- risk traders… is now giving millions of ordinary investors record profits — even during one of the rockiest markets on record.
I'm talking about options trading.
That's right. The myth that options are too complex, too confusing and too risky for the average investor, has been finally debunked.
Done right, options can create a cash cow in anyone's portfolio – and fast.
Learn the secret strategies for safely trading options: Get "The Power Of Options" guidebook, a FREE 50 page guide from one of the best-selling options authors in the U.S. . It's free.
Consider the case of the SPDR Gold Trust (NYSEArca:GLD). In January 2011, GLD shares were trading for about $130.
You could have gone "long" GLD by buying 100 shares. You'd have done pretty well; 12 months later, GLD was trading at $160, and your 100 GLD shares were worth $16,000. That's a nice 23.7% gain.
Or you could have used options.
Let's say, instead, you bought one January 2012 $135 call. (A "call" is just a bet on the price of GLD going up from $130; the same thing you're betting on when you buy the stock.)
In January 2011, the call was trading at $9.00. So you would have spent about $900. Yet by the expiration month, the price had risen to $28.00, so that option "contract" you bought was worth $2,800. That's more than a 300% gain on the very same price move of GLD.
That's the power of options. It's the reason famous Wall Street investors like John Paulson and others have made millions even in rough market conditions. And why ordinary investors are now jumping on this bandwagon, too.
Record profits are being made with options trading: Learn the secret strategies and all the ways to avoid risk in this free step-by-step options guide. to get a free copy.
Options expert Michael Thomsett says it's a Wall Street myth that options trading are too complex and too risky for the average investor.
"All you need," he said "is some good information… and a sense of where the market is heading. There's no reason you shouldn't be grabbing your share of the record profits."
Apparently, millions of ordinary investors already agree…
In five short years between 2005 and 2010, volume in options trading has tripled, making it the fastest growing market segment worldwide.
Options are even being traded on hundreds of ETFs and indices. No longer are they viewed as exotic, high-risk and impossible to understand. The truth is, options have gone mainstream.
What's changed? How did options suddenly become the top play for the ordinary Mom and Pop investor?
Today's investors are more informed about powerful strategies. They now realize that options' trading is less risky than they originally thought. Some strategies even reduce risk. (One popular strategy actually profits whether your stock goes up or down.)
A guy sitting in front of his desktop computer or iPAD, has just as much access to the market as the Wall Street big wigs who used to corner this market.
Increased Market Volatility
The volatile markets of the past few years have scared many investors completely out of the market. Options trading lets them stay in – and actually make huge money from all the swings.
"Today, with the help of a few skills, we "common folk" can take advantage of the great benefits the options market offers," said Thomsett
Editor's Note: There's no reason you shouldn't be grabbing your share of these profits too. Especially once you understand the low-risk, high potential side of options. Go here to get a free copy of our "Power of Options" guidebook. It will walk you through everything – from nuts to bolts – including step-by-step instructions for making some amazing gains.
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