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.
Case in point, we’ve traded options some fifth 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 of which grew 174-fold and the second grew 38-fold. Doing the math, we could easily fail monthly trades 11 times and make it all up and then some with one annual gain.
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.