Welcome to the page that discusses Put Options

I want to start this blog by telling you that I have no 1-800 number, I am not trying to sell you any newsletter with the next great stock idea. I am not inviting you to come to my house and view a cleaning agent. I will not try to sell you plastic bowls or any other ‘can’t miss’ ideas. I do not have any life changing secrets and I cannot promise you a flat stomach.



I am going to share with you my daily option moves and the reasons behind them. My way of trading options are of course not the only way to utilize Put Options. This is a way that I have found to be simple and easy and not as complicated as some make this business. My hope is that you can develop a steady stream of income and continue to enjoy your life.











Sunday, October 24, 2010

Expanding on my way of trading

For those that have not read my book, I will give a quick summation of how I figure my profits.
I trade Put Options. I sell them, and I keep it simple (KISS)
I try to leave as much cushion as possible and still get an acceptable return. Returns are hard to figure when you don't actually put out any money. However, I calculate my returns by what my account was at the beginning of the month and what it is at the close of the month. How much simpler can it get? When selling put options, you will have to set aside part of your account to back up your trade. This is called 'MAINTENANCE'
If you have to set aside $10 for a position and you make .30, you made 3%
So, often you will read that I made 3% etc on a trade. That is how it is figured.
If you have a 10,000. account and you made 300, it is a 3% gain that month. Often you might think, Wow he only made 300 or whatever on a trade but it continually adds up. That is what I try to impress to newer traders (and experienced ones) The little profits add up and keep risk to a manageable level. There will always be risk, if you want to be in the options business risk is part of the business. But to manage them and be satisfied with smaller but consistent gains it how I trade them. I've been doing it for 14 years now and have seen traders come and go. Being able to maintain consistent returns even small ones seems to be the holy grail.
Good trading all.

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