Turbo Charge Your Profits With Options

Turbo Charge Your Profits With Options



Turbo Charge Your Profits With Options
I know many people who trade stocks .​
Most of​ the US house holds have stocks in​ various companies .​
Have you tried options?
Many people think Options are only for professional traders and the big boys .​
It is​ not so .​
Let me explain in​ simple terms what are the pros and cons of​ options.
Here is​ how the option works .​
Assume that you see a​ house in​ your street and the owner is​ planning to​ sell it​ retiring and moving to​ Florida within one year .​
The current market price for the house is​ $215,000 .​
You go and talk to​ the owner Brad and tell him Hi Brad; I​ would like to​ lock in​ this house for the price of​ $220,000; I​ will have the right to​ buy this house for this price for one year (i.e .​
till December 2018) .​
For this I​ will pay you $2000. .​
Now you and Brad come to​ an​ agreement; Brad gives you the right but not an​ obligation to​ buy the house till December 2018 at​ a​ price of​ 220,000 .​
You have the right and not the obligation that is​ important which means if​ the house price goes down you don’t need to​ buy it​ at​ 220K.
Now in​ end of​ 2018, the house prices came up and now Brad’s house is​ now worth $235,000 .​
Now you call a​ real estate agent sell it​ for 235,000 and give 220,000 to​ Brad and pocket a​ profit of​ 15,000 (minus your option premium of​ $1000) .​
So your net profit is​ $14,000 on an​ investment of​ $1000 .​
That is​ like 1400% return on your money.
If you had bought the house at​ 215,000 and sell it​ for 235,000 you might have made 20,000 or​ about 10% return on your money.
The options trade is​ explained in​ the author's website completely with examples .​
We encourage the users to​ read the complete example and start getting more profit.




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