| If you are like most people, in these times of economic | | | | things that you can do to stack the odds in your favor |
| uncertainty you are looking for a way to earn extra | | | | when dealing in stock options. First of all rather than |
| money, that doesn't take a lot of time, preferably from | | | | buying puts and calls you can use credit spreads. This |
| home and that doesn't require a lot of capital to get | | | | method of selling a higher priced option and purchasing |
| started. If you fall into this category then options trading | | | | a lower priced option alone will stack the odds |
| might be just what you are looking for. Although trading | | | | enormously in your favor simply because this method |
| is a simple business to get started in, it is far from | | | | can allow you to make money whether the markets |
| easy and be wary of anybody who tells you | | | | go up, down or sideways. As a matter of fact using |
| differently. Also you may have heard that trading | | | | this method can allow you to win as much as 80-90% |
| options is risky, and while nothing in life is risk free, | | | | of the time, which is why professional traders use this |
| there are ways to substantially reduce the risk. | | | | type of trade to generate consistent income. |
| How much money do I need to start? | | | | The next thing you want to do is a bit of technical |
| One of the beautiful things about options trading is it's | | | | analysis and look at the S&P stock index. If the |
| one of the few businesses that you can take for a | | | | index is moving above it's 200 day moving average |
| free test drive to see if you can be successful at it. By | | | | you generally want to be purchasing stocks or using |
| trading in a simulator you can start your business with | | | | bull put credit spreads. If the index is moving below it's |
| no money. Obviously you won't be earning anything | | | | 200 day moving average you should short sell stocks |
| either, but you will be gaining valuable knowledge. You | | | | or use bear call spreads. |
| can find a simulator at After you've traded in the | | | | How much can I earn? |
| simulator for a few months and become consistently | | | | This can fluctuate depending on market conditions but |
| profitable you can start with as little as $2,000. | | | | by using credit spreads you can make anywhere from |
| Finding a broker | | | | 5-20% a month. So with $10,000 you can generate |
| The first step in getting started in an options business | | | | anywhere from $500-$2000 in extra income a month. |
| is finding a broker. There are many (excuse the pun) | | | | Reducing Your Risk |
| options available, a few of the good ones include, | | | | 1.Start off by trading in a simulator at 2.Always use a |
| OptionsXpress, TradeStation and Interactive Brokers. | | | | stop loss or have your positions hedged. |
| These are all members of the Financial Industry | | | | 3.Never trade with money that you need to pay for |
| Regulatory Authority (FINRA) and the Securities | | | | you day to day expenses with such as rent and bills. |
| Investor Protection Corporation (SIPC), which are two | | | | Nervous money always loses. |
| organizations that protect you against fraud from | | | | If you'd like to find out more about options trading and |
| financial brokers. | | | | credit spreads click on the link in the resource box |
| Putting the Odds in your favor | | | | below and sign up for a free 10 part course. |
| While this isn't a comprehensive list there are a few | | | | |