Special Report - Trading Options As A Business
Cutting Through The Hype And Trading Options Like A Business For Monthly Income And
Most retail options traders begin their options trading career by picking up a book or attending a seminar where
they learn about one or more option trading strategies. Perhaps they subscribe to a website where they learn about
a "bullet proof" trading scheme.
"There is no one option strategy that works all of the time..."
What all of these paths hold in common is that they are geared for "retail" traders and focus on individual
trades. What you're not told is that there is no one option strategy that works all of the time.
Covered call traders tend to do real well during periods when the market is climbing higher and will even make
out okay when it's trading sideways. A falling market can bring a lot of pain for them, however.
Trading As A BusinessMarried put traders can make a killing during market rallies. It's while they're waiting
for that upward movement that their trades languish.
Ever hear of iron condors? Terrific for taking advantage of range bound markets, but when the market makes a big
move up or down, you can really get hurt.
So, what if we took all of the best things these strategies offered and rolled it into one monstrous options
strategy? There are folks who have tried this. It's a trap for the unwary.
There is an answer, though...
What if you learned how to trade like a professional? What if you learned how to open multiple options
positions, each complimenting the rest of your portfolio, to create exactly the risk profile you want?
That's how the professionals do it. Why not you?
First, let me share a bit of my history as an options trader so that you can appreciate where I am coming from
and why you might want to consider what I have put together here.
How Irrational Exuberance Prepared Me To Trade Options Like A Business...
My name is Chris Smith. I'm the founder of TheOptionClub.com, and I'm a retail trader just like you.
Trading Like A BusinessTen years ago I was confidently trading the stock market, taking profits out of nearly
every trade I opened. I bought stock, watched its price run higher, and sold it for a nice profit.
My accounts got fat and I could see my dreams being fulfilled...
What I did not realize was that we were experiencing a wildly irrational bull market...one that Alan Greenspan
referenced as being fueled by "irrational exuberance..."
...I was just another one of the lemmings drinking the Kool Aid as I bought stock as fast as my on-line broker
and dial-up Internet connection allowed...
Yes, it was the "Dot Com" era and I was riding the euphoric wave that lifted profitless companies with the
expectation that the Internet was going to...
...yes...change everything, including their income statements!
Then came the big reality check...
As the market began to wake up to the fact that most of these Internet companies were losing money
quarter-after-quarter, and clue in on the reality that they owned stock in a bunch of crappy companies, the market
began a vicious sell-off that ripped gaping holes in my portfolio.
"Finally, I realized that buying stock in a bear market was a fool's game and that I was the fool playing
I went to cash. I waited for the market to bottom. I bought back in...
Then the market sold off some more...
Now I was using stop loss orders, which were routinely being triggered as I continued to buy stock in a falling
market. I was getting clobbered!
Finally, I realized that buying stock in a bear market was a fool's game and that I was the fool playing it. I
was humbled and finally realized that there was a great deal I needed to learn...and that began my journey into
Charlie's 5% Per Month Cash Machine
One day while the market was selling off, I found myself sitting in a conference room for most of the day.
During the breaks, I began talking to the guy next to me about the market and confessed that I had suffered a real
This guy, let's call him Charlie because I've honestly forgotten his name, began telling me how he was now
pulling 5% or more out of the market each month!
Doing the math in my head, I realized that was 60% per year and considering my recent experience thought that
was a screaming hot return.
That day, at lunch and during each break, I asked questions and even took notes about how Charlie was selling
call options against his stock. After Charlie explained the "nuts and bolts" of his operation it seemed straight
forward and almost "stupid easy" to pull off.
Here's how Charlie was doing it...