The Wheel Options Trading Strategy - 29 Things You MUST Know

The 5 Most Frequently Asked Options Trading Questions: Answered!
To get the transcript and MP3, go to: https://www.rockwelltrading.com/coffee-with-markus/wheel-options-strategy-29-things-you-must-know/

Options trading is a fantastic way to make money. But it can be complicated and there are so many questions! In this video, I answer 5 of the most frequently asked options trading questions, including ...

The Wheel Strategy: 0:13
The Basics: 2:12
Picking The Right Stocks: 15:48
Selling Calls After Getting Assigned: 25:14
What To Do When A Trade Is In Trouble: 34:35

Options trading is one of the most exciting & profitable ways to make money, but it can also be difficult to understand.

In this video, I answer 5 of the most frequently asked options trading questions, including:
- ARE OPTIONS BETTER THAN STOCKS?
* For me, I say yes.

1) You need less capital than when trading stocks.

Using AAPL as an example, if you wanted to buy 100 shares of stock currently trading at $122, that would cost you $12,200.

If you wanted to buy a call option for AAPL, it would cost between $3.05-$3.10. So to control 100 shares of AAPL, it would only cost $305-$310.

2) You can't lose that much money. 100 shares of stock cost $12,200 and if say, the stock drops from $122 to $110, that's a $12 drop X 100 shares = $1,200.

If you are trading Options, the MAXIMUM loss is the money that you paid for it ($310)

3) When you're trading stocks, you must be right about the direction. When trading options, you can make money even if you're wrong.

- ARE OPTIONS RISKIER THAN STOCKS?
* For me, the answer is NO when used correctly. You would lose less money trading options than trading stocks.

- CAN OPTIONS GO NEGATIVE?
* NO. If you're BUYING options. Risk is limited to the premium you paid. But...
YES, if you're SELLING options. When selling options, your loss can be as much as the price of the stock can drop. You must have a trading strategy/plan.

- CAN OPTIONS BE EXERCISED EARLY?
* In theory, YES. An options buyer can exercise this option at any time.
Practically, NO. You would make more money selling the option instead of exercising it.

- WHEN DO OPTIONS GET ASSIGNED?
* Expiration date of an option is always on a Friday. Usually, the broker automatically exercises ITM options, but the buyer of an option has until 5:30 pm EST to inform the broker if they don't want the shares. So the usual settlement date is that Saturday.

- WHY OPTIONS ARE DANGEROUS?
* It can be dangerous, which is why you need these 3 things:

1) You MUST have a strategy.
2) You MUST have tools (PowerX Optimizer)
2) You MUST have the right mindset.
* Focus on SRC Profits

Recommended Links & Videos:
Options Trading 101: https://bit.ly/2V7Nf9T
3 Reasons You’d Lose Money Trading The Wheel Strategy: https://www.youtube.com/watch?v=0KfJNZFqfE8
Trading with Margin: https://youtu.be/UHy84SOGl4Y
How to manage a trade that's in trouble (TQQQ): https://youtu.be/G6tPKaz03Qo
What Is Delta In Options? https://www.youtube.com/watch?v=oQqsTOl6Iyg
Markus' Trading Office: https://www.rockwelltrading.com/office

#StockMarket #OptionsTrading
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Видео The Wheel Options Trading Strategy - 29 Things You MUST Know канала Markus Heitkoetter