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But buying "calls" and "puts" can be complicated. Options can expire worthless, and you can lose your entire investment if you don't have the right tools.
That's why today, we're going to show you three options tools to increase the odds of making triple-digit returns.
Of course, we can't promise you're always going to find winners.
But the more knowledge you have, the better chance you have at making money.
And the first tool starts with saving yourself hundreds or even thousands of dollars in brokerage fees…
Options Trading Tool No. 3: Robinhood
Robinhood has already won over 3 million investors because of its intuitive platform and free stock trades, and it just added free options trading in March…
"When we look at the landscape right now, we see a lot of room for improvement. It's extremely expensive to trade options," Robinhood co-founder Baiju Bhatt said in a December 2017 Bloomberg report.
And Robinhood's co-founder is absolutely right…
Commissions from options trading can range from $3 to $9.99 per trade, and contract fees run from $0.15 to $1.25 or more, according to NerdWallet.com.
Investors who make 10 trades per month could pay up to $1,348 per year in options fees.
To avoid fees cutting into your profits, visit RobinHood.com, sign up for the app, and request access to options trading.
Once you have your options account up and running, the next step is to see what the market is thinking about a trade.
And there's no better place to find that information than through StockTwits.com, an investing site with over 1.5 million monthly users as of 2016…
Options Trading Tool No. 2: StockTwits
StockTwits shows you investor sentiment and how many users are watching a particular stock.
The investor sentiment shows if you're going with or against the market in a trade. If investors are bullish on a stock, the price could be climbing, which would make a call more expensive and a put cheaper.
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If investors are bearish and the price is falling, puts will cost more but calls will cost less.
And finding a discrepancy between sentiment and price can lead to huge gains…
Because of a data scandal, investor sentiment was down on Facebook Inc. (Nasdaq: FB). The Facebook stock price plummeted 19.22%, from $184.49 on March 16 to $149.02 on March 26.
But Money Morning Capital Wave Strategist Shah Gilani knew the negative sentiment was wrong.
Gilani told Money Morning readers to buy the Sept. 21, 2018, FB $190 call, and when we shared his recommendation again on April 23, it was trading for $4.40 per call.
Today, it trades for $16.70 per call, a 279.54% profit in roughly three months.
For the stock-watchers feature, you can keep track of increases in signups before earnings or a major event.
If a stock price stays the same before earnings, but there's a noticeable increase in watchers, that could mean money is on the sidelines and waiting to enter a trade. It could also mean current shareholders are waiting for troubling news, preparing to cash out as soon as possible.
By this point, you'll have your Robinhood account set up and utilizing the research features on StockTwits.com.
The last step is to know how much money you can make from options as the underlying stock's share price moves.
And in order to find triple-digit returns, you have to use this tool…