Best Way to Make Money Trading OptionsBest Way to Make Money Trading Options You might be VERY surprised to know that the best way to make money trading options is not necessarily the quickest way. It's true, and it is a lesson that I learned over and over again as i tried to build wealth in the stock market. It is also a lesson that I came to appreciate as I realized that strategies that add passive residual streams of income to your life are the kinds of strategies you want to invest your time and energy into. With that being said, there are two main ways to make money with options trading and the stock market. The first way is buying long where you buy the option and hope it goes up in price. The second method is short selling, where you sell an option contract and receive a credit or payment upfront. After you receive the credit, you simply wait for the option to expire worthless so that you can do the same thing again. The second option is a great way to receive monthly payments with very little effort. By reading my last statement, you probably guessed that I am a little biased toward the second method, which is option selling. I will admit, I like the adrenaline rush that comes with buying options and making massive profits in hours, even minutes. However, I'm really a lazy investor at times and I want to make money in the easiest way possible. When I first got involved in options trading I did do some options buying so I have first hand experience with both. As I am getting older and thinking about retirement, strategies that are passive and that pay me upfront (instead of strategies where I have to hope and pray to get paid) are the strategies that I find are most successful. I have had my most success by selling options than I have had with buying options straight out. With option buying (calls or puts) you will only make money if the stock goes in one direction. Up for a call option, and down for a put option. In some cases the stock will also need to move significantly in a certain direction in order for you to make money. With option selling (covered calls or naked put strategies) you can make money if the stock moves in three directions. Yes, you heard that right. By selling options you can make money if the stock is flat, goes up, or goes down. Now if you know anything about the market you know that the stock market can only go in one of three directions....UP, FLAT, or DOWN. Based on that, which options trading strategy (buying or selling) do you think gives you the greatest chance of success? Lastly, consider that 80% of options buyers LOSE money and 80% of options sellers MAKE money. The odds are in your favor as an options seller and so statistically speaking, the best way to build wealth with options trading is to be an options seller. Dale Poyser has been investing for over a decade and has done meticulous research on many passive residual income ideas and strategies that can add low risk residual streams of income to your life. Not only does Dale personally practice the methods he writes about, he has also coached many others in these methods to show how easy it is to make money with passive residual streams of income. You can read more about Dale's strategies at http://bestresidualincomestrategies.com/ Article Source: http://EzineArticles.com/?expert=Dale_Poyser
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