Why New Options Traders Get Burned

[image] Hey guys and gals, Retail traders have flooded the stock market… and many have just caught wind about the options market. They realized they can place directional bets on their favorite stocks on the cheap, and the returns can outpace stock returns. I think it’s great because that’s just fresh meat… and [I can take advantage of these “suckers” in the market.]( This new breed of options traders only cares about one thing in my opinion… getting more bang for their buck. What they tend to do is go super far out of the money to get their hands on the cheapest contracts out there. The thing is… When they do that, [they’re actually placing themselves at a statistical disadvantage.]( You see, the cheaper the options contract and the further out they go (in terms of strike price)... The Lower The Odds They Could Win Take a look at these calls my [Sucker Bet Scanner](detected in Tesla Inc (TSLA) — every trader’s favorite electric vehicle and energy company. [image]( This came across my screen yesterday at 9:55:21 AM ET. What was so interesting about this trade? First off, these “suckers” purchased TSLA $1,580 calls expiring in just one day, when the stock was trading at $1,485.83. That means they didn’t buy themselves enough time for TSLA to get to their target. You see, at the time the trade went off, they would need TSLA to move more than 6.5% in a day’s time... Just To Break Even On The Trade I don’t know about you, but who in their right mind would place such a bet? To me, that’s just a gamble because there’s no real catalyst in play for TSLA for it to move that much. Could those TSLA options have exploded and expired in the money? Sure, but the odds of that happening were pretty slim. The one factor I believe most new options traders don’t focus on is [the chance the options can expire out of the money (OTM)](, or worthless. I really don’t know why, cause that number actually tells traders the likelihood they’ll make money on the trade. For example, that specific TSLA trade had a 91.72% Chance OTM (as shown in the screenshot of the scanner above). I don’t know about you, but I wouldn’t put money behind a trade idea if I knew I had a 91.72% chance of losing my money. [The beauty of these trades is that I can actually take advantage of them.]( How? Well, I don’t want to spoil it for you. [I put together this special training session]( so traders can learn how I stack the odds to my favor and take advantage of the low-odds bets in the market. [If you’re just starting to trade options, this can be a total game-changer.]( [Register now.]( [image] Jason Bond  [Use this link if you wish to stop receiving exclusive emails]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC (“RagingBull”) subscription, website, application or other service (“Services”), please review our full disclaimer located at . FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers’ trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication. Click [Unsubscribe]( 62 Calef Hwy #233 Lee, New Hampshire 03861 United States