Buying options? Try this instead

Much better odds over long run

April 03, 2024

Yesterday when the Market took a dump… how did that play out for you?

To be honest, my account was down yesterday. 📉

This is trading, after all.

I had a good reason to believe the market would move higher… but then it didn’t work out. It happens to all of us.  

But… here is the important lesson I want to share with you right now.

I lost much less money than I could have by sticking to the strategies I’ve been teaching in Alpha Hunter (and today, things have bounced back to a profit for me, but that’s another story!)  

Tuesdays are when I teach in Alpha Hunter.  And it was PERFECT timing for what I have been preaching lately…

Buying call or put spreads.

Even when trends don’t go your way, having a long spread is always the better way to go than just buying calls or puts only.

Because you’re insulated when you’re wrong.

Don’t you want some insurance when you’re wrong?

If I had just bought calls on my losing QQQ trade, I would have been sitting on a $10,000 loss if I had only bought calls.  🤮

But with the spreads, I was “only” down around $2,000.

That might sound pretty bad to you, but consider my upside could have been $20,000+ if things worked out the way I planned (and after today’s rally, it is still possible!)

The thing I want to reinforce right now is that, in the long run, buying long spreads will ALWAYS  be better than just doing the calls alone.

And as traders, we should be asking…

Not how much upside can we possibly make – but can we make SOME upside?  

And by “some upside,” I am still talking about juicy potential gains of 200-300% while typically capping my downside around 50%.

I think if you learn to put this strategy into practice, it will give you a better edge as a trader over the years ahead.

And that’s the name of the game.  Live to trade another day.

Play the long game.

I want you to learn this, too.  Even if you aren’t a current member. 

No it is not a 30 minute brag session on how much I made! LOL.  But a great example of what I teach my members in Alpha Hunter.

If you watch the video, you can see besides teaching I also turn to LIVE trading.  I had my eye on LLY…

Showed my reasoning WHY and HOW I thought LLY was setting up in a way that looked positive to me.

Put the trade on LIVE in front of members.

And overnight…this happened.

*Note: Trading is hard, results not guaranteed and should not be expected to be replicated typically.

Nice $1500 for me overnight.  That also was worth showing up to the session!

So listen… if you’re ready to really dig in, learn to hedge your risk, become a better trader…

And play the LONG game…

P.S. As always, for questions about any of our services, contact our amazing sales team at 1-800-585-4488 / [email protected]. They’d love to hear from you!

 

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