Defined Risk, More Reward: The Undeniable Power of Options Trading

[Image] The Market is Ripping! Last Friday, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) had its best day in almost three years! Keep reading to see how I’m playing it… In today’s Dark Money Trades rundown: - 😱 3 reasons why I love to trade options - 💰 2 JUICY smart money bets from this morning - 🔫 Ben’s Bullets – 3 big options trade ideas for this week 🚀 Dark Money Lesson: Why I Love Trading Options 😍 If you’re new to the options market, it’s time to pay attention… Last week, I talked about why certain people fear options trading (and why you shouldn’t pay attention to them). But today, I want to discuss why I love trading options (and why you should as well). The options market is complex, but it’s not impossible to grasp. After all, you might be holding options without even realizing it. Do you own car insurance? If the answer is yes, then you’re essentially holding a put option on your car. Your contracts will pay out if the damage to your car is above a certain threshold (which, in this analogy, acts like your insurance’s strike price). This is exactly how options trading works, with one key difference… If you dent your car, the insurance company will (hopefully) pay to repair the damages … but you don’t get paid in cash. But if you’re directionally correct on an options bet, you can potentially make more money than any common-share trader would (with less upfront risk). This is why I love trading options … I can define my risk and give my trades more potential upside simultaneously. Let me explain… Imagine that I want to bet on Amazon.com, Inc. (NASDAQ: AMZN) going up in the near term. AMZN is trading for $140 but I only have $1,400 in my trading account. If I’m trading shares, the best I can do is buy ten shares. If AMZN goes up 5%, my $1,400 will turn into $1470, giving me $70 in profit. Not a great reward for risking $1,400, right?! However, if I bought $1,400 worth of weekly (or even monthly) call options, and AMZN moved up 5%, the contracts would likely be up over 100% (or even 200-500%). The best part is that I wouldn’t need to risk the entire $1,400 to give myself a solid risk/reward profile. I could make three to five smaller options bets with $1,400 … and if just one of those positions went into the money, I’d probably still make more money than I would by trading common shares. Of course, there’s a catch. Unlike common shares, options expire. You must be aware of your contract’s lifespan and trade accordingly. But if you work hard at it and stay disciplined, options trading can open up an entirely new world of trading possibilities. Now, let me show you the options I’m watching this week… 💰The Biggest Smart-Money Bets of the Week💰 🔴 $1.1 million bullish bet on COIN November 10 $88 and $95 calls (seen on 11/6) My scanner caught a big trade in Coinbase Global Inc. (NASDAQ: COIN) calls yesterday… Someone is betting nearly $1 million on COIN across two strikes, $88 and $95, both expiring this Friday, November 10. I like this setup because COIN has been a daily squeeze. And yesterday, the chart was right near resistance at $88. I think a break of the $88 level could send COIN soaring. Plus, the general bullishness from Bitcoin’s (BTC) recent breakout can’t hurt. Watch COIN closely this week… 🔴 $196k bullish bet on PLTR January 19 2024 $28 calls @ $0.21 (seen on 11/6) Yesterday, my scanner detected four big sweeps on Palantir Technologies Inc. (NYSE: PLTR) worth nearly $200,000. This trader is betting that PLTR will move ten points higher by mid-January. Normally I’m looking for shorter-dated options, but these sweeps caught my attention for a few reasons… First, PLTR is in a weekly squeeze, and the last time it came out of one of these channels, the stock exploded. (After being stuck in a rangebound channel between $6 and $12 from May 2022 to May 2023, PLTR started blasting off and has since booked 185% in YTD gains.) Second, PLTR was down more than 3.5% yesterday, making the call options cheaper for an entry. Watch out for resistance at $20.50. If the chart can clear this level, $28 by January isn’t out of the question. 🔫 Ben’s Bullets for the Week 3 interesting ideas I’m keeping an eye on in the market this week: - DKNG NOV 17th $34 puts - KKR NOV 17th $58 puts - TSLA NOV 10th $1230 calls Happy trading. Let’s make some money! Have a great Tuesday, and I’ll catch you tomorrow! 📈 - Ben Sturgill P.S. If you don’t get my trade idea LIVE this morning — you might be too late to take advantage of it… Don’t let that happen! [Click here NOW to add today’s LIVE trade reveal to your calendar!](   66 West Flagler Street STE 900 Miami, Florida 33130 United States [Click Here to Unsubscribe]( **Our gurus teach skills others have used to make money. 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