Most traders see options as a leveraged get-rich-quick trading strategy. They purchase cheap out-of-the-money options and hope to be successful only to find their options expiring worthless, don’t understand the true dynamic nature of options or how to properly speculate with them.

Traders often lack the specialized and often esoteric training to make intelligent index option trades, our specialty. At New Era Trader we only buy options because of the open-ended profits with clearly-defined and limited risk versus selling options with small returns with unlimited risk.

On occasion for longer term stock trades only, options (calls and puts) are sold short.  For example, as a New Era Trader recommended stock cycles up, covered calls may be sold (short) to generate additional (premium) income while the financial risk is minimal. Alternatively, on the down side, puts can be sold to increase returns or create lower entry cost on recommended stocks.