The stock price can go 3 ways— up, down, or sideways. And as long as it doesn't pass above $200 in the above example, Jason wins.
That's because when traders buy options, they're betting that something will happen. They have on average a 25% chance of winning when holding to expiration.
When traders like Jason sell options, they're taking those bets and saying something WON'T happen. This could give them a 75% edge— right off the bat.
That's according to one study by the Chicago Mercantile Exchange (CME).
And when Jason learned this years ago, he wondered why he hadn't figured it out sooner.
Because one of the most important aspects of trading to Jason is the ability to control risk while seeing growth.
The best part is that selling options is no more difficult than buying them.
The only difference, as far as setting up the trade, is selecting 'sell to open' instead of 'buy to open.'
Beyond that, it's a matter of finding great setups.
But Jason boiled it down to a 2 step process, which includes scanning for "sucker bets" and checking for event catalysts.
The scanner itself is BRAND NEW and Jason hired a genius engineer to build it.
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