Is options trading safe? πŸ’‘ Aha moment πŸ’‘

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What's really happening inside $2,000 Small Account Journey trades?

To better understand, let's examine what's truly happening in the options market.

Ever bought a call or put option and had it expire worthless?

Sally loves you! 

Read this short story I wrote. 

Then we'll examine why I chose selling put spreads to teach subscribers how to try and grow a small account. 

So options act as insurance on stocks.

Bob has a big stock position in TSLA, but Elon Musk has been unpredictable lately, so 'Bob the buyer' buys put options out a month to protect against 'unpredictable Elon'.

Meet 'Bob the buyer'

And 'Bob the buyer' knows a thing or two about 'buying' insurance. His big stock position in TSLA isn't his only big investment.

Bob owns a home too, so he went to State Farm and 'Bob the buyer' bought monthly home insurance for $100.

Now meet State Farm agent 'Sally the seller' and retail trader.

Sally is the State Farm agent who sold 'Bob the buyer' his home insurance.

Sally also likes to trade on her lunch and because she knows a thing or two about probability, unbeknownst to her, sold 'Bob the buyer' those puts options out a month.

Bob goes about his business and the month flies by.


TSLA stock price ends up going slightly higher that month, which is great for 'Bob the buyers' big stock position.

But those put options out a month, 'Sally the seller' collects the premium Bob paid. The insurance expired worthless.

And if Elon acts unpredictable again, Bob feels okay about buying put option insurance out another month.

During that month, neighborhood kids broke a window at Bob's house.

But because Bob has a deductible, Bob's insurance doesn't cover the $300 cost.

Nothing else happens to Bob's house that month, so again, 'Sally the seller' keeps Bob's full premium. The insurance expired worthless.

Bob wants his house to be safe, so he's okay to buy the monthly premium again.

What 'Sally the seller' knows from being a State Farm agent is that most monthly insurance premiums expire worthless and that's one way she at State Farm makes big money.

Sally also knows most options expire worthless, so she likes to play probability in the stock market too, acting as the seller of options, afterall, they are insurance contracts with expirations, just like home insurance.

Bottom line, 'Sally the seller' collects the full home insurance premium in multiple ways:

  • If nothing happens to 'Bob the buyers' home

  • If nothing bigger than the deductible happens to 'Bob the buyers' home

Same for the TSLA put option insurance Bob bought:

  • 'Sally the seller' collects the premium if the stock goes slightly lower

  • She collects if the stock goes sideways

  • And she collects if the stock goes up

'Bob the buyer' can only use his home insurance if something devastating happens and the same is true for the put options he bought.

Who has the probability?

Bob the buyer or Sally the seller?

Which brings me to Warren Buffett. 

Do you know what Warren Buffett's favorite investment was?

Hint: it's not Coca-Cola, Wells Fargo, Chevron, or even Apple.

Although all of those have been great investments, he told Forbes:

"My favorite investment… is GEICO, which I learned about when I was 20 years old."

Which makes sense considering GEICO has increased between $29-53 billion since he acquired it.

How does an insurance company make that much profit? 

It's because they're in the business of SELLING contracts (aka an insurance policy) that they know will most likely expire worthless.

So the customer gets "peace of mind" while GEICO gets profit.

The same dynamic is at work when it comes to trading options. 

You can either be a BUYER or SELLER of option contracts.

And since 77% of option contracts expire worthless when held to expiration, the odds are in favor of sellers.

But for some reason, traders keep buying.

In other words, when you sell options you're like GEICO selling contracts to their customers.

Of course, there's more to it than that.

And since you're already a reader of mine, we're going to hook you up so you can start your Journey now. 

Not retail $1,999. Not $1,499. Not even $999.  

Limited-Time Offer


Discount Expires Thursday

Subscribers learn: 

  • How one simple decision can help improve your probability of winning option trades from 30-40% to 60-70%

  • A simple way to understand how "time decay" works with option contracts (and the specific "sweet spot" we target for expiration dates)

  • One simple tweak we made to our options trading strategy that flipped the odds in our favor and helped us become more consistent

  • Why trading options the "normal way" is a losing strategy where the odds are already stacked against you (and what do instead)

Subscribers get:

A daily watchlist and text alerts right to your smartphone via the RagingBull APP.

Actual trade #1 AAPL alerts:


You shouldn't feel any pressure to join. 

Instead, I want you to be excited, full of hope and ready to learn. 

Yes, this discount is amazing

Yes, Thursday the price increases. 

No, I cannot guarantee you'll make money.

But I can promise you this. 

I believe in my heart learning how to grow a $2,000 account is one of the best things you'll ever do as a trader. 

I do not care how much money you have, if the strategy is bad, it's not going to grow.

And my 10, strict guidelines for this strategy, will speed up your learning curve. 

Now here's the cool thing about the $2,000 Small Account Journey service. 

You get a laser-focused watchlist in which I teach the trade I'm about to make.

Then you get a smartphone alert just before I enter and exit. 

Learning in a real-time environment. 

All of that retails at $1,999/year. 

But NOT for you. Here's your price.

We'll talk about the next trade first thing Thursday morning over coffee.

Even if you trade a huge account, I still think you should learn this. 

Subscribe now.

Jason Bond

RagingBull, LLC
62 Calef Hwy. #233, Lee, NH 03861

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