| Hey - George here, Did you know that stock option buyers are like gamblers and stock option sellers are like the casino? Option buyers are speculators. They try to predict the direction of the market and hope to beat the casino. Option sellers, on the other hand, can calculate exactly how much the odds are in their favor in virtually every market scenario. Even if the market moves against them, they can come out of a trade the happier party. Why's that? An option buyer has to be right about three things: - The direction of the underlying stock
- The amount of the move in the stock price
- The time it will take for the stock to move that amount
If you have any idea how the stock market works, then you already know how low the probability of meeting all three conditions is. Option sellers, on the other hand, only need to be right about one thing: Time. You could be wrong about the direction of the market and STILL come out on the positive side. How? Time decay. Time decay favors the seller by diminishing the value of the option as time passes. There's only one scary disadvantage that option sellers have... ...and that's unlimited losses. That's where the time-tested option selling strategy comes in: Credit Spreads. Credit spreads allow option sellers to give up a portion of their profit, in exchange for limiting their losses...and the beauty of it is that everything is calculated. Nothing is left to chance. A credit spread works by selling a high-premium option and simultaneously buying a lower-premium option. The difference in premiums becomes your net gain while your maximum loss is capped at the difference in the strike prices. But how do you know what strike prices to buy/sell at? How can you spot good underlying stocks to apply this strategy to? How do you know what expiration to pick? I've designed a credit spread trading system called the Options Income Machine. Everything is based on strict and straightforward rules to follow for any scenario. Click here to watch the free training now. All the best, George Trade2Live P.S. You'll be able to use what you learn right after this completely free training. Discover this time-tested options trading strategy to make your trades more predictable now. Trade2Live
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