Increasing Profit Potential for Your Option Trades

Call option debit spreads have several advantages over directional call option trades.

- Boosting the profit potential of the AMAT trade by 80%
- Reducing the dollar risk in the AMAT trade 48% from $778 to $403
- Providing downside protection that allows the AMAT trade to profit it the stock is up, down or flat at option expiration.

Whenever you can profit when a stock price increases, decreases or remains flat at option expiration it will result in a higher percentage of winning trades and this can make you a more successful trader.

Nasdaq ETF Option Trade

In this video the Hughes Optioneering Team will explore an option spread strategy that that provides distinct advantages over directional option trades. When you purchase a call option, the underlying stock/ETF must increase in price or the call option will lose value possibly resulting in a 100% loss for your call option trade.

 Advantages of Trading Option Spreads versus Directional Trades

When you buy a call option, the underlying stock must increase in price in order to profit from the call purchase. And at option expiration the underlying stock must increase above strike price of the option or you will incur a 100% loss of the option premium.

Option spread trades, however, can profit if the underlying stock is up, down or flat at option expiration giving option spreads a big advantage over directional trades.

In the video below learn how Chuck Hughes produced over $1.9 million in actual closed trade profits over the last three years trading option spreads
 

Option Trading Videos

In today's video Chuck will explore the option trade orders he uses to increase the profit potential for option trades.

The type of option order you use to enter and exit option and option spread trades can make a big difference in your option trade profitability. This is especially true for trading option spreads. Learn how option spread orders helped produce an average return of 98% for the option spread portfolio below.

The Best Way to Trade Options

When you purchase an option you need to have an option strategy. Options are considered a wasting asset due to the time decay characteristics of options. Out-of-the-money options consist of only time value. At option expiration options lose all time value. Buying at-the-money or out-of-the-money options is very speculative and there is a high probability that these type of options will expire worthless resulting in a 100% loss.

Due to the time decay of options, Chuck maximizes the intrinsic value and minimize the time value of an option when he buy's options.

In this video you will learn a simple option trading strategy and formula that will help you reduce the negative effects of option time decay. This technique has good profit potential and at the same time can greatly reduce the risk of option investing and increase your percentage of winning trades.

Please contact us for more information on Chuck's Option Trading Seminars!