Your Almost Daily Bit of Wall Street Wit & Wisdom

Outsiders

h/t AP Photo / Warner Bros.

Look for options that are set to move from “out-of-the-money” to “in-the-money.”  That is where your greatest returns are made.

You should only trade options with risk capital (money you can afford to lose) and only if you understand options.

Out-of-the-money options have no intrinsic (real) value.  Their premium (price) is for time and volatility only.

In-the-money options have intrinsic value plus time value.

Now in our 31st year of publication, Options Hotline readers apply our Superleverage strategy to make great options gains from small stock moves, with an always known and completely limited risk.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Best regards,

Steve

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