Pros and Cons of Options Trading

[Logo] December 26, 2018 [www.tradewins.com]( Recent Articles [Trading on Expiration Day]( by [Lawrence McMillan]( [Trading Rules for Calls]( by [Dale Brethauer]( [PULSE Options Weekly Newsletter]( by [Chris Verhaegh]( [TradeWins Author Team]( Tomorrow, you could begin doubling your account every single month starting with one letter. The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2017, following my trades you would be doubling even tripling your account some months. Let me show you how.” He will show you exactly what to do... and he’ll give you the blueprint for just $1. [Get Daily Trade Alert Now]( About TradeWins [Inside Trading Newsletter]( [Webinars]( [Videos]( [Trading Strategy]( [Options]( [Futures]( [Forex]( [Day Trading]( [Subscription Services]( [E-Books]( [Customer Satisfaction Survey 2018]( Pros and Cons of Options Trading [GRIP]Some of the benefits of option trading relative to trading stocks or mutual funds are: When you purchase options you commit a limited amount of capital and thus have less total dollars at risk in the market. The surplus dollars can be placed in safe investments like a money market fund. Instead of buying stocks consider "leasing" them with options especially when your market expectations are likely to change more frequently with today's volatile markets. Set aside a small portion of your portfolio for options to benefit from the frequent market swings that can create big profit opportunities for traders positioned to capitalize on market swings. Options offer profit potential not only when the market rallies, but also when it declines. With most mutual funds you can only benefit from bullish markets. If you are bearish on the stock market, cash is usually your only alternative. With options you can profit from both bullish and bearish markets. Put options are normally a better choice than selling short a stock. Option purchases do not require a margin account. In addition, a short stock position has virtually unlimited loss potential whereas the maximum loss for a put option purchase is limited to the purchase price of the option. [Read More]( Trading on Expiration Day [Expiration Day] In this clip from "Reducing the Risk of Options", Lawrence McMillan explains how to trade on expiration day. What is actually occurring behind the scenes? What can be expected? McMillan provides a good hedge strategy for that day, and what should be watched. [Watch Video]( Trading Rules for Calls [Rules for Calls] In this video, Dale discusses the rules of thumb he uses for trading calls. First, Brethauer explains what requirement must be met to enter the trade. He then details how he decides when to exit a trade. Last, Dale provides rules of thumb to watch along the way. [Watch Video]( PULSE Options Weekly Newsletter [PULSE] First Things First We are probably going to talk a lot more about last week then we will next week. But before we go backwards, I must go forward. And before I share any pleasantries, allow me to share the schedule for next week. Whether you celebrate the Christmas Holiday or not, the market does. It starts its celebration early by closing three hours early on Christmas Eve. Therefore the market will close at 1 PM Eastern Time on Monday, December 24th. The Stock Exchanges will be closed for the entirety of Tuesday, December 25th. Understand Monday the market is only open three and half hours. Yet it still will be an expiration day for SPY options. The Market will be closed on Tuesday. It will open again on Wednesday, another expiration day for SPY options. Thursday is not an expiration date for SPY, but Friday once again will be a SPY expiration. [Read More]( [www.tradewins.com]( [Facebook]( [Twitter]( [LinkedIn]( [Youtube]( [Better Business Bureau]( © Copyright 2018 [TradeWins.com](. All rights reserved. TradeWins Publishing, 22C New Leicester Hwy, #117, Asheville, NC 28806 Email: support@iss-trading.com | Phone: 888-233-1431 | Fax: 888-258-4938 PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: [All About Auto-Trading]( , TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. 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