11 May

Option Premium Explained | Options Trading For Beginners

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Hey guys and gals,

Well, it looks like tech stocks are leading the market higher… and this could continue, but who really knows. Today, the Nasdaq notched its sixth day of consecutive gains — and right now I’m going to be selective with my plays, looking for both bullish and bearish trades.

I know you’re used to me talking to you about momentum stocks, and how I’m able to locate stocks set to run — ahead of time…

However, today, I want to switch things up and talk about options.

Now, don’t get scared off by the term options because I want to show you an easier way to think about them.

I think it helps if traders think about options — more specifically, options premium. I personally believe it helps to think of it as a bucket to visualize options — I call it the premium drip.

By using this technique, I’ve found it helps me stack the odds in my favor and figure out where the best options trading opportunities are.

So what’s the premium drip and why do I think it’s helpful for options traders?

You’ll see in this important video.

 

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