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David Jaffee

Top 3 Tips for Trading Options Profitably in 2021 & 2022

Are you ready to get back on track with trading options in 2021 and 2022? 

Or maybe you’re an experienced trader that wants to revisit some basic concepts?

You may already know some options trading mistakes you should avoid, but what about things you can do to increase the probability of being consistently profitable while trading options?

Read on to find out the top tips for trading options profitably in 2021!

Trade Small

Make sure your trades are small. As an options trader, it may be tempting to use all your buying power, especially when trading naked options.

Using all your buying power is an extremely risky approach.

Before you know it, a few bad trades can wipe out months of profits.

Since options use significantly less buying power when compared to buying shares of the underlying security, the general tendency is to overtrade and trade more contracts than you should.

By doing this, you’re increasing your risk of being placed into a margin call if the trade does not go your way.

Would you like more tips on how to trade options profitably in 2022? 

Then check out a review of David Jaffee’s options trading course and how it can help you win up to 98% of your trades.

Choose Stock Options with High Liquidity

As an options trader, you should choose high quality, liquid, underlyings, and make sure the spread between the bid and ask is small.

The illiquidity of your stock options can affect the profitability of your trading strategy because there may be significant slippage when trading and it may be difficult to roll / manage an illiquid underlying.

The true power of options lies in its leverage, flexibility and control to set up positions so that you create a high probability of profit.

Do you want to learn one of the best option trading strategies?

David Jaffee’s options trading course will teach you how to develop this skill set!

Sell Both OTM Puts and Calls

Novice options traders are sometimes way too focused on how to make money trading.

They tend to sell strikes that are too close to the current market price of the underlying stock.

Additionally, novice traders tend to trade puts, or calls, but rarely both.

It’s best to trade BOTH puts AND calls.

If you believe that a position is oversold, then it may be best to sell a put.

If you believe a position is overbought, then it may be best to fade that move and sell an OTM call option.

As long as the stock price stays within a certain price range (above the OTM put and below the OTM call option strike prices), the options seller will be able to reap maximum profits. 

For 1 put option and 1 call option, the maximum profit will be 100 x (net credit received from selling the OTM options).

Even so, David Jaffee does not recommend selling both puts and calls at the same time.

Instead, he believes it’s best to sell a put only when the stock is oversold, and a call only when a stock is overbought.

If the stock price ventures beyond the strike price range, there’s still a breakeven price range that will allow the seller to make a profit.

Any movement beyond the breakeven price range will result in losses.

How can you minimize the risk of this strategy?

Always choose strike prices that are far out of the money when selling options so that you have an adequate safety net.

Are you looking to make 2021 and 2022 a success?

Then you may want to take a closer look at why David Jaffee’s options trading course is highly rated!

Conclusion

If you’ve started options trading on your own, you’ll realize that there are some strategies that are more profitable than others.

Trading small, choosing options with high liquidity, and selling OTM puts and calls are all part of David Jaffee’s simple options trading strategy that can help you win up to 98% of your trades.

Do you want more amazing advice related to options trading? 

Visit BestStockStrategy.com and enter in your email address to receive $400+ worth of valuable free options trading information.

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David Jaffee

Stock Options Trading

The probability of buying a stock at one price and selling it for a higher price is about 50/50.

Even if you do succeed with stock options, you’re only likely to earn about 7% a year before taxes.

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David Jaffee

Best Investment Strategy

The best investment strategy will never be a get-rich-quick scheme.

David Jaffee of BestStockStrategy.com has taught more than 1,500 students how to be patient and disciplined by structuring their investments and trades to have a high probability of profit.

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David Jaffee

#1 Options Trading Education

Do you want to learn how to trade options?

Do you even know where to start?

You may have heard that options trading is a great way to supplement your income, and that is true.

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David Jaffee

Can You Get Rich from Options Trading?

Most people want to make a million dollars but not very many know how to accomplish this goal.

David Jaffee of BestStockStrategy.com has taught more than 1,500 students how to make money trading options.

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David Jaffee

How to Trade Options

Many people want to become traders to earn financial freedom and independence. The best way to trade isn't actually to trade stocks, rather it's to learn how to trade options so that you can earn additional income while reducing risk.

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David Jaffee

Trading with David Jaffee

Trading with David Jaffee has helped many people. There is a large interest in trading options and increasing income. Unfortunately, a lot of individuals stop pursuing these interests before they even try. Concerns about the unknown, fear of failure, and misinformation leave people confused and wondering where to begin.

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David Jaffee

How to Become a Millionaire: Successful Options Trader (David Jaffee) Offers Advice to Teenagers

Making the most of every moment may sound like a cliché, but it holds true. Instead of using this sentiment to encourage wanderlust or reckless living, David Jaffee stresses the importance of hustling at a young age.

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David Jaffee

Learn Options Trading with David Jaffee

If COVID-19 has taught us anything, it is the importance of forming a strong financial foundation. Unexpected financial struggles put a strain on individuals and families, but having a side hustle or flexible source of income can make the difference. Options trading may seem impossible if you are not familiar with the most profitable strategies, but it can be learned quickly and efficiently with the right coach.

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David Jaffee

Finding a Balance Between Health and Success – David Jaffee

My name is David Jaffee, and throughout my life I have learned about different ways to balance health and success.

Far too often, people sacrifice their health in the race to succeed. This can be detrimental to long-term success, and will lead you in the wrong direction in life. Here are some ways I have learned to find a balance between health and success throughout my journey.