Options Leverage

Options can be use for many purposes. One of the useful purpose is leverage. This mean instead of buying the stock for 40 bucks, you will be able to get it for 20 bucks but the trade off is the TIME.

The steps of Options Leverage

- Pick a stock (sector rotation, upgrades/downgrades, favorites, fundamental …)
- Decide on the trend (up or down / Call or Put )
- Decide the Target Profit
- Decide on the Time to hit the target profit
- Decide on the Strike (ITM or OTM)
- Decide on the Greeks
- Theo value (undervalue or overvalue)
- Make Money $$

Whenever you enter a market, you need to have the target profit and also its stop lost. Once you have decided then you can go to find a suitable options. Never ever choose the option first then the stock. Always choose the stock to trade first then you choose the option suitable for the stock.

All the best in choosing the right options.