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I want to talk to you about something Wall Street has been lying to you about – options.
Now you may have heard before that they're "risky" and "not worth it…"
This is financial propaganda.
I spent years on the floor of the American Stock Exchange and have been teaching and trading options for over two decades.
And the truth is… Wall Street doesn't want you even interested in learning options – let alone trading them – because they want to hoard all the profits and leave you at the mercy of the markets.
I'm going to tell you exactly what they're hiding…
The Truth About Options
What most of the billionaires and hedge fund managers on Wall Street want you to believe is that options are too risky, too complicated, and simply not worth your time. They'd rather have you dump hundreds of thousands of dollars on the most expensive stocks out there – so they can take the profits. And they're counting on the misinformation they've put out there about options to keep it that way.
The truth is… the entire reason listed, exchange-traded options first launched in 1973 was to mitigate risk in the stock market and give you leverage. When you buy stock, you're at the mercy of the markets, which could cost you big-time. In fact, U.S. stocks are more expensive now than ever before. So, for example, if you want to buy one share of Amazon.com Inc. (NASDAQ: AMZN), you would have to spend more than $900… for a single share. And more often than not, people want to own more than a single share of stock in their portfolios.
But with options, you can actually control 100 shares of expensive stocks, like Amazon.com Inc. (AMZN) for less than $500. So while Wall Street wants you to shell out over $90,000 for 100 shares of AMZN, you don't have to. You could pay $500 or less to essentially "rent" 100 shares of the stock instead. And since you can control shares of a specific stock, you can also increase your leverage without tying up a large amount of capital in your trading account. In fact, most brokerages require a deposit of only $2,000 or less to get started.
The Wall Street guys don't want you to know this.
They also don't want you to know how easy it is to make money with options – and how much of it you can actually make. They want you to believe that it's simply "too good to be true." But it's not. Options offer an amazing versatility that you can use in a variety of ways to profit from the markets, no matter if they're up, down, or sideways. And in times of high market volatility, options can act as a financial "escape" from the uncertainties of traditional investing methods.
As far as options being too complicated… again, lies.
Options are extremely easy to trade whe…
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.