NUMBER 5 – ABILITY TO TRADE BOTH SIDES OF THE MARKET
You can trade the market up and trade the market down. Most traders who buy stock don’t know how to trade the market to the downside. With Options it is easy. You just buy a put option and with the power of leverage, you can get into large positions with little capital.
NUMBER 4 – THE POWER OF LEVERAGE
Options are highly leveraged instruments and as such, you can trade big size with little capital. For retail traders who are starting out a few thousand dollars to control hundreds of shares of Facebook is pretty amazing. It allows small traders to act big and trade with the leverage.
NUMBER 3 – ABILITY TO BE FLEXIBLE WITH YOUR TRADES
If the market goes down and against your position in stock all you can really do is take the loss or buy more stock. But why would anyone want to increase their position size on a bad trade? With options, you can change your position to be favorable even if the underlying stock continues to go down. You can adjust and move with the markets.
NUMBER 2 – DEFINED RISK TRADES
With stock, you purely enter in a directional position and you are at the mercy of the markets. If the market goes up you make money. If it goes down you lose money. If the market goes sideways you make nothing. You have no ability to adjust and with stop losses you can lose when markets close. With defined risk positions you lock in your max loss on any given trade and you are protected 24/7, unlike stock. When markets close you have competing positions that lock you in.
AND THE NUMBER 1 REASON IS…..
“Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.”-Note from Dudley
Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.
E.B. Tucker with Casey Research recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.
“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”