It’s hard to believe we’re just days away from a new year and a new DECADE.
It makes you think, doesn’t it?
The last 10 years of my life have been absolutely amazing — mostly because I made the decision to pivot from my low-paying teacher job to a career trading stocks and options.
Now I’m an actual brand.
But I never would’ve had this awesome life with my wife, son, and Tesla (yes, it’s family now) had I not taken that FIRST STEP.
“Trading options” sounds so intimidating, doesn’t it? Something reserved for those sweaty-browed, coked-up alpha males you see in old footage of the New York Stock Exchange — screaming “sell!” to someone across the room in their disheveled Armani suits.
But thankfully I conquered my fears — and now I want to open the door for others.
Because come December 2029, don’t you want to be proud of where you are in life?
As they say, fortune favors the bold.
Probably the biggest fear to conquer before trading options is fear of the unknown.
Options trading comes with its own jargon, and words like “slippage” and “margin” can turn a lot of people off before they even try.
But trust me when I say — if I can learn, so can you.
And I’m here to guide you every step of the way.
I am a former teacher, after all, and education is still my passion.
In fact, my brand-new MasterClass — 12 straight weeks of training, directly from me — kicks off IN JANUARY!
Subscribers who call (833) 885-3870 and request my Jason Bond All Access — which includes all three of my primary services (Weekly Windfalls, Jason Bond Picks, and my newest, Smoke Signals) — will be enrolled!
But for those who don’t know, let me break it down in the simplest possible way…
Trading options is a LOT like gambling — except instead of betting on a horse or a team, you’re betting on how a stock will move over a certain period of time.
There are options strategies for literally EVERY POSSIBLE OUTLOOK — but we won’t get into all that.
The most popular strategies are simply buying a call option (bullish) or a put option (bearish — and what I do in Smoke Signals).
For instance, if you think Stock XYZ will move from $100 to $95 over the next month, you might buy a 98-strike put option with a month until expiration. Then, you can make money the farther XYZ shares move south of $98 in the put’s lifetime.
Or, if you think Stock XYZ will move from $100 to $105, you might buy a 102-strike call option, which will become more profitable the higher XYZ shares move above $102 before options expiration.
There are other ways to bet bullishly and bearishly with options, too.
In WeeklyWindfalls, of course, I trade credit spreads — which gives me higher odds of being profitable.
A bull or bear credit spread is more conservative than outright option buying, but it’s called “the casino strategy” because option sellers win about 70% of the time.
Now, again, this is a very, very generalized explanation about trading options… We have a ton of educational content — including videos — on our RagingBull site, and I’ll continue to email informative eletters to my subscribers.
And don’t forget — I’ll be putting a LOT of elbow grease into options education in 2020, starting with next week’s very first MasterClass.
Fear of Scams
There are so many scams on the internet these days, and a lot of these crooks are getting more technologically savvy about getting your money without offering you anything in return.
There are also several companies offering stock and options recommendations — but guess what?
Their traders get paid NO MATTER WHAT.
If they send you a trade that goes bust, do you think their paycheck is lower? Of course not.
However, I operate by a strict set of morals and ethics… I try to be a good guy above everything else.
That’s why I just donated $220,000 of my profits to the heroes at St. Jude.
It’s also why I PUT MY MONEY WHERE MY MOUTH IS.
My subscribers can follow my trades IN REAL TIME, and every dollar they see on the screen IS MINE.
Yes, I sacrifice my own money on these trades, so I 100% have skin in the game.
And when I do put on a bad trade, trust me — no one is harder on me than me.
Fear of Commissions
Last year, several brokerage firms embarked on a “race to zero” commissions.
As such, it’s never been cheaper to be an options trader.
Per stats from NerdWallet.com, TD Ameritrade — what I use — as well as E*TRADE, Charles Schwab, and several others have $0 commission on option trades.
All three of those brokers have five stars (out of five) on the site.
I’ve also tried my hand at TastyWorks.
However, keep in mind that while commissions have nosedived recently, due to escalating competition, most brokers still charge a relatively low per-contract fee.
Other things to consider when choosing a broker:
- How intuitive is the platform?
- How easy is it to place a trade?
- Will I have mobile access?
- How fast are orders executed?
- Are their monthly or annual fees?
- What screening tools are included?
- What kind of educational resources are available?
Fear of Not Enough Money
Many places, you need only $2,000 in your account to put on credit spreads — the strategy I trade in WeeklyWindfalls.
Of course, that varies — TradeStation, for instance, says you need a minimum of $5,000 in available equity to place spread trades and sell “naked” options (when risk is really high).
And it’s usually less money to place “vanilla” option trades, like buying puts or calls.
But your broker has measures in place so you don’t bite off more than you can chew…
You’ll need to be cleared by your broker to trade options at all, and if you want to trade spreads, they will let you know how to obtain those privileges.
Most likely, you’ll just answer some questions to let them know where you are knowledge-wise, and that will determine your level of trading (for the time being).
And again, I’m here to walk you through the education side of things…
But thinking that options trading is a rich man’s game is a mistake.
You certainly don’t need millions in the bank to begin trading these securities. As I said, I started on a teacher’s salary!
Plus, whether you’re buying options or trading credit spreads, your risk is absolutely limited.
With straight call and put purchases, it’s limited to the premium paid for the option. That’s it.
With a credit spread, risk is calculated by subtracting the credit received at initiation from the difference between the sold and bought strikes.
So, if you put on a spread at the 100- and 102.50-strike calls for a credit of $1.20, your risk would be $1.30 ([102.50 – 100] – $1.20).
And don’t forget, because of the POWER OF LEVERAGE, you get a lot more bang for your buck speculating with options over buying or shorting stocks outright.
Fear of Being Wrong
But Jay, you ask — what if I make a bad trade?
Hey. It happens to the best of us.
I’m not going to lie and tell you every trade I put on will be perfect. I mean, if I’d never lost a trade I’d either be a cheat or a prophet.
The most important thing when you do have a loser is to dust your shoulders off and LEARN FROM IT.
If you aren’t doing so already, start journaling all your trades. Write down what you were looking at when you put on the trade, your entry and exit parameters, ALL OF IT.
Then, once you get some trading reps under your belt, you can look back at your misses and try to find common denominators.
As Albert Einstein said, “Insanity is doing the same thing over and over and expecting different results.”
Some of the other lessons I’ve learned from losing trades:
- Don’t chase stocks — money is made waiting, not trading
- If your positions are causing you stress or keeping you up at night, they’re probably too big to begin with — whether that’s the dollar amount you’re risking or the number of open trades in your portfolio
- When trading for premium, don’t fight the trend… it’ll be obvious when it reverses
- Don’t disrespect your stops hoping for a miracle, and don’t ignore your targets hoping for a 100% (or more) winner
In fact, managing risk depends on clear and defined targets, stops, and capital allocation.
So, if you’re budgeting just 5% of your trading capital to an options trade, you’re going to be able to survive a lot more losing trades than if you’re dedicating more money.
Trade smarter, not harder.
Fear of Not Enough Time to Trade
Finally, many people believe trading stocks and options is time-consuming.
Well, it can be.
But the good news is — THAT’S WHAT I’M HERE FOR.
I spend my entire day stalking trades, looking for the perfect set up. Whether that’s hunting small-cap stock for Jason Bond Picks, conservative option trades for Weekly Windfalls, or more aggressive bearish trades in Smoke Signals.
So let me do my job!
All you have to do is follow along when you’re good and ready.
Call (833) 885-3870 and request my Jason Bond All Access — which includes all three of my primary services, as well as my MasterClass, which kicks off SOON. Don’t wait or it’ll be too late!