The best of the best in the sport of baseball fail 70% of the time when batting 300. The same if true for stock options so don’t fret when you don’t hit a home run each and every time at bat because when you do succeed, you could more than make-up for any loss. Plan on wining 20% or 30% of the time and work hard to steadily improve your craft. If I can get to Ty Cobb’s best-of-the-best batting average of .366 then I’ll be elated and making bank!
Case in point, we’ve traded stock options some fifty times on Tesla for a couple years now and during that period, we’ve hit two what I’ll call grand slam home runs. The first options play grew 174-fold at maturity and I cashed in far too early. The second grew 39-fold and I rode that horse all the way to the stable. Do the math, genius! One could easily strike-out every month for a year and then make it all up and then some with one trade home run.
Homework assignment . . . watch two movies; The Big Short & Money Ball and you’ll learn to respect diligent research and hard work along with trusting your gut.
RISK – Trading options may result in potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options markets. Do NOT trade with money you can’t afford to lose.
