Option Essentials: How to Choose Your Own Probability of Success

Some people will try to take a simple concept and sprinkle it with some mumbo jumbo to make it seem complicated and then claim only they can explain it to you! Don’t listen or don’t buy into any such load of bunk!

Take something like options. Yes, a lot of people, maybe even your stockbroker, will tell you options are too complicated and confusing. What they may really be telling you is options are something they don’t want to spend the time to understand, so they don’t want you to trade them either!

Today, the options world is a lot like the automobile world of 1910. Yes, lots of people have joined the ranks of options traders. But only ten years ago, it was just a privileged few investors who could take advantage of things like streaming quotes and real-time options chains. Options were shrouded in mystery and deemed too complex for the average Joe – to be traded only by the so-called “sophisticated” professional investors.

Since then, however, seismic changes in the options world have leveled the playing field for individual traders and investors. Thanks to advances in technology, innovation trading tools, and better access to what was once privileged information, the self-directed investor is now in the same position as the Wall Street fat cats were during their heyday – just a few short years ago.

So, now that we as self-directed investors have the same technology as professional traders why aren’t we applying the technology in the same way?

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