1. What are options?
Options are contracts used primarily to reduce risk, giving the holder the right but not the obligation to buy a certain stock for a certain price by a certain date. Options expecting prices to rise are ‘call’ options; those expecting prices to drop are ‘put’ options. Key components of an option are the premium, strike price and expiration date..
2. What are call options?
Call options are contracts whereby the holder expects the value of the underlying stock to rise, thereby increasing the value of the option. Key components that make up the value of an option include intrinsic, which is the difference between the underlying stock's price and the strike price. Extrinsic is the other main component, which is primarily the time value.
3. What are put options?
Put options are the mirror image of call options, whereby the holder expects the price to drop. As the underlying stock value drops, the put options increase in value, enabling in theory for the holder to sell the underlying stock first, then buy them back at the lower price. In reality, the idea is to trade the option rather than exercise them for the underlying stock.
4. Is option trading liquid enough to trade?
Absolutely, but that said, much depends upon the underlying stock and its options. Not all stocks have options and even some with options do not carry enough liquidity to ensure that you can sell your holding, should you be looking to sell. It is incumbent upon the options holder to trade intelligently, and that comes from proper training.
5. How are options and stocks similar/different?
They both trade on the same broker platforms. Options are based on underlying stocks but unlike a stock, which you could buy and hold, options require a different approach. Options are similar to ice cubes: they melt over time. The closer they are to expiration, the faster they melt. Profitable options trading requires a clear understanding of risks and rewards.
6. Is training really necessary for options trading?
Some brokers now require you to pass an oral test of your comprehension of options before enabling your account. While we cannot guarantee you will make money trading options, we can confidently guarantee that you will lose your money if you don't. Options trading is inherently risky and the risk of loss can be substantial. The decision is ultimately yours.
7. Can you lose more than your investment?
Yes and no. If you purchase straight calls and puts, you can only lose your investment in that purchase, should the options expire worthless. If you erroneously 'sell naked', you could lose your entire account balance and more, if called upon to inject more funds into your trading account to cover a short position. These scenarios are covered in proper training.
8. Options compare to other financial instruments how?
Options trading is the fastest growing instrument. Once available only to the pro institutional traders as a way to hedge their trades, options trading is now at the street level fueled by individual or retail traders. It continues to grow exponentially from its inception in 1973, when it was first introduced by the Chicago Board Options Exchange.
9. What should I look for in a trainer/course?
Your success will depend greatly on your training. Find someone who is knowledgeable and can determine your needs and goals, effectively conveying the information in an empathetic way. You need to be comfortable with your trainer and feel good about the process, that you are getting a solid grounding and support. All this, at a reasonable price.
10. Do I really need to know about spreads?
You could if you want but it's really not necessary. To just make money on the market, master one great strategy on one great stock. Learn its nuances and behavior to reap the benefits every day. Some folks, including us, now only trade one stock, every day, for amazing returns. Keeping it simple is the easiest way for long term growth on the market.
11. What experience do you have, Hugh?
I have many years in trading and life experience. Successful traders understand the two are intertwined as attitude and a grounded approach to trading is 90% of success, maybe more. Anyone can learn the other technical stuff. Like the market itself, it’s all about harnessing expectations and controlling emotions.
12. Why do you charge for webinars?
I only want serious traders involved. If you have skin in the game, you will be more inclined to pay attention and learn. There is a free Introductory Webinar and even specials from time to time but for the material I teach, I paid very dearly. As it is, our services are more than fairly priced, many say even grossing under priced.
13. What are your 'one-on-one' courses like
They are interactive, done live using GoToMeeting®. I determine your level of experience and fast track from there so we don’t waste time and money. Each session is about an hour in length and done at mutually scheduled times. After you understand the concepts, you will start with paper money, then move on to real cash.
14. What are your group sessions like?
Similar to ‘one on one’ webinars, they are held through GoToWebinar®. There may be a few, there may be hundreds. Either way, they are presented in a controlled environment where hopefully the majority of the group benefits, often feeding off each other. These sessions are about 2 hours in length and more economical… a great way to get started. Like all our sessions, they are recorded and available for at least 3 months for your review.
15. Why don't you use textbooks?
The markets are dynamic. Strategies are fluid. Much of what I teach is unorthodox by others’ standards. No textbooks here; we use current data, live charts and as much real time information as possible. You need to know what is happening now, not in some theoretical sense but in practical terms. That said, you are issued eBooks for later review.
16. Why are you teaching?
I love teaching others skills that can truly make a difference in their lives. Seriously. So many people attempt trading only to lose it all within a year. By teaching others, I too, stay sharp with the market. This rewarding occupation is also socially satisfying as teaching others 'gets me out of the house.'
17. Do you actually trade your picks?
A lot of analysis goes into deciding what and when to trade. My picks may not be suitable for everyone and are subject to change. We each have varying levels of investment and risk tolerances. As markets can and do change at the last minute, I may have to adjust my trade, but yes, I do trade them.
18. What about the $25k rule?
The Securities and Exchange Commission, in an effort to protect traders against themselves, instituted a rule that says you can only take 3 round trip trades in a 5 day period if you have less than $25k in your trading account. A violation of this may result in a suspension in your trading. You can bypass this ruling by opening up a cash account. Check with your broker. This rule does not apply to non-U.S. account holders.
19. How do you determine your picks?
I use a series of indicators, some proprietary, some public, combined with years of tried and true professional trading experience. I offer individualized courses and webinars to show you exactly what I do. You can emulate, postulate or procrastinate the trades, it's ok. But you should endeavor to learn so you can go to the market and take money at will.
20. How is your course/service different?
First, with me, you are a real person with a name and real earned money. I treat you with that respect. Second, I personally mentor you in conjunction with your current trading knowledge and experience. Third, I truly care about your results to include all aspects of trading, not just a particular strategy. In addition, we use the exclusive KISS Indicator.
21. Why are other courses more expensive?
The fluff. True, there is plenty to learn but do you need to know how an engine works to drive your car? I could teach you everything, no problem and you will pay me. Some folks spend fortunes to learn strategies galore yet still can't trade. With me, you will learn what you need to make money now.
22. What are the hidden costs/surprises?
The costs are what you will lose if you do not learn how to trade. This is serious business and there are traders ready, willing and able to take your money without even thanking you for it. There are no hidden costs to my training.... what you see is all there. I've been told it's a bargain at twice the price.
23. Do you ever suffer losses?
Absolutely. Anyone who tells you otherwise is lying. Losses are a part of trading and should be factored in to your money management techniques. You'll find my losses posted on my Recent Results page. Controlling your losses is key to your overall winning. I also teach how to limit your losses.
24. If this is so easy, why isn't everyone doing it?
A question I hear a lot... truth is, my technique, while simple, is not that easy. The emotional control, discipline and patience must be mastered. The actual technique can be learned fairly easily but to put it in practice can take some time and certainly some effort. I guide you throughout the process.
25. How do I trade the Launch Pad?
When the Launch Pad triggers, usually between 9:30 and 10 am, we look at the 1 minute chart. If it’s going in our direction, we buy then. If not, we wait for the turnaround, then buy. We trade next week’s ‘at the money’ options, putting in a ‘good to cancel’ sell order for an 8% profit. We adjust as necessary, managing the trade, especially when we hit a loss of 63%, should that happen.
26. How do I trade the Batter's Box?
When the Batter’s Box triggers, we look at the 1 minute chart. If it’s going in our direction, we buy then. If not, we wait for the turnaround, then buy. We trade next month’s ‘at the money’ options, putting in a ‘good to cancel’ sell order for an 8% profit. We adjust as necessary, managing the trade, especially when we hit a loss of 63%, should that happen.
27. What should I know about Live Trading?
You will be sent a GoToWebinar® registration notice the day prior. Check your Inbox by 7 pm ET the night before. If it is not there, check your spam/junk boxes and make sure your server is set to receive mail from us/Constant Contact. If you still do not have it, contact us at that time so we can resolve any technical issues. We are generally unavailable for technical support the morning of Live Trading. You will not be credited time if you fail to check for this important email.
28. Do you give refunds?
No. Well, maybe, if you have a legitimate concern, for example, if you were unable to access a subscription and you were within a couple days. We do not seek to steal your money for services not rendered but at the same time, there is a cost to setting up and servicing your account. Failure to master our program is not grounds for a refund.
29. When can we start?
Right now. Send me your contact details and we’ll discuss the next steps. From knowing nothing to seasoned trading, I can improve your lot in life if you let me. We’ll start with basics, move to paper trading (pretend dollars) and when you’re ready, enter trades using real money for real profits.
30. If this is so easy, why isn't everyone doing it?
A question I hear a lot… truth is, my technique, while simple, is not that easy. The emotional control, discipline and patience must be mastered. The actual technique can be learned fairly easily but to put it in practice can take some time and certainly some effort. I guide you throughout the process.
31. What if I have more questions?
If your questions were not answered here, or if you would like to talk to me about a custom designed plan to make the program work for you, send me an email or through any ‘Contact Us‘ link.
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Information in this website is for educational purposes only. Past performance does not guarantee future results. Option trading is risky.