6 Reasons To Trade Options

Why options right? Here are my own personal top 6 reasons to trade options over stocks:

  1. You can profit from market volatility regardless of the direction of the price movement (duh!).
  2. You can profit from the strong tendency of the market to trade in well-defined ranges.
  3. You can profit in all market environments by trading multiple option strategies on highly liquid exchange-traded funds on broad-market indexes.
  4. You don’t have to be right about market timing or direction when selling options.
  5. You can walk away from the market for days and weeks at a time and still have a profitable month (happened to me just this past July).
  6. Finally, over the long term it’s better to make a small return consistently than have huge swings in your portfolio value with market booms and crashes.

There they are…my top 6 reasons to trade options. Of course every now and again I will get into a stock trade but it’s rare. Options are by far the most profitable security on the market for individual traders.

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