The Options Trading Madman…
My father was an options trading madman…
And not in a good way!
When I think about the way he traded, I often see the gunslinger in the old west standing in the middle of town getting ready to shoot it out with the bad guy.
If he wins, great. If he loses, he loses EVERYTHING!
I didn’t understand what he was doing when I was a kid. However once I got older and started working at the CBOE, I realized just how much naked risk he had been taking for years.
And honestly, when the realization hit me – I was stunned.
Remember, by this time I had already lost $50,000 in a naked “sure thing” options trade…
so I was sensitive to risk.
I will say this for Pops, he made a lot of money being a “gunslinger” back when Options trading was like the wild west.
He was trading before there was a systematized way of pricing options contracts, so he would find options contracts people would overpay for – in his opinion – and sell them the contracts.
As I said, he made a lot of money – so I guess he knew better than most of the people he was selling to.
Still, the idea of having all of those naked positions makes me shiver 3 times.
That’s why I manage Options360 to make solid returns while mitigating risk.
We routinely get to enjoy large returns in very little time. Still we often leave money on the table in exchange for safety.
Because we manage our risk, our losses are limited and controlled.
That’s why we are 44% up this year – winning and losing trades counted – and the S&P is only 13.7%.
Manage your risk. This isn’t the wild west anymore, and if you go all out you might find a big winner – but you can easily lose all those profits and more on a big loser.
To Your Success,
PS. You can still grab your trial membership to Options360 for just $19. You should do that now as I can’t guarantee if the trial will be available next year. Click here and start your trial right now.