In this video, we will explore a simple technique that can increase your percentage of winning option trades.
Once you select a stock for an option purchase you must select an option strike price Depending on the stock, there could be hundreds or even thousands of strike prices available. How do you determine which strike price to use?
The Optioneering Team will also at a strategy for selecting an in-the-money option strike price that only requires a 1% price move in the underlying stock to break even and start profiting on our option trade.
A 1% price movement in the stock to start profiting has a much higher probability of being profitable compared to at-the-money or out-of-the-money strike prices that can require up a 10% to 15% price move in the stock to break even which may not happen before option expiration.
If you purchase an at-the-money or out-of-the-money option and the underlying stock is flat at option expiration, it will result in a 100% loss for your option trade!
Don't miss this opportunity to learn how to trade in-the-money options that only require a 1% price movement in the underlying stock to start profiting.
This 1% Rule will increase your percentage of winning trades compared to trading at-the-money or out-of-the-money options and this higher accuracy can make you a more successful trader.