Constructing Low-Risk Option Trades

I've been trading options for about a decade now, and on my journey to achieve success on the stock market I've made myself a lot of friends. Collectively, I've probably met a couple hundred other option traders, and the truth is, only about a handful of them were making any money! It makes me wonder; why are there so many people out there investing in the stock market when most investors just end up loosing their capital?

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The Risk with Popular Option Income Strategies

The biggest difference in trading low-risk option strategies compared to the popular income strategies is that the time to recover from a debacle is very different. For example, over the recent "computer glitch," those who were trading iron condors as income spreads lost about 50 to 70% over that two-week period. If you think about this, it'll take about 10 months to a year and a half for them to make back this money. Most option traders will never rebound from such a debacle.

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Option Trading Course Stresses Greeks

A lot of option traders don't fully understand Option Greeks. The inexperienced option trader only focuses on the Greek known as Delta. Although Delta can tell us a lot about our option position, the best traders don't stop there. A good trader will focus on volatility in the stock market.

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