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The market has been in an absolute whirlwind for three months. Circuit breakers have been hit for the first time in history. The Dow has tanked more than 1,000 points in one day, only to rocket back up the next. Top stocks like Apple and Boeing have crashed to prices they haven't seen in years.
This volatility is creating a wealth-building opportunity I've only seen three times before.
You see, when it comes to making money in the market, the long-term buy-and-hold method can't begin to compare to the sheer profit speed of trading options.
But the quickest option-trading strategy of all is selling puts. It hands you an instant cash payout the second you place the trade – and gives you the chance to own the stock at a deep discount, building generational wealth that can never be taken away from you.
This strategy is the best of both worlds. And as a result, it requires different steps when it comes to placing your trades.
The biggest difference between selling puts and buying straight options is margin.
See, when you're buying long calls, puts, or even straight stocks, you typically need a cash account. This means that you put up 100% of the money for the trade. If you want to buy 10 option contracts for $100 each, then you need to pay $1,000 up front. If you want to purchase 100 shares of Apple for $330 a share, you'll need a whopping $33,000.
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.