SlideShare a Scribd company logo
1 of 28
What Every Investor
Should Know About
Options!
By Joshua Belanger
Often times, I feel like Iā€™m living through an
episode of MythBusters. Let me give you a
quick overview if youā€™ve never seen this
popular show thatā€™s on the Discovery
Channel.
The show circulates around a group of guys
and gals who run elaborate tests (based on
science) to prove if long standing rumors, old
wives tales, unbelievable stories and myths
are true or not.
For example, my favorite episode is when
they were able to prove that cell phones,
iPodā€™s or even laptop computers do not affect
flight instruments!
Now, Iā€™m not a scientist by any stretch of the
imagination. However, Iā€™m constantly myth-
busting when it comes to the financial
markets. In fact, just a couple weeks ago, at a
party, I was dispelling myths about options
investing.
It is where I met Ian, a successful young guy
(in his mid 30s) who owns two dental
practices. When Ian asked me what I do for a
living, I explained to him that I teach people
an efficient, more profitable way to make
money with less risk.
I went on to explain to him that I use options
to create risk/reward scenarios that shift the
probability of success in my favor. Of course,
he thought options were riskier than stocks or
mutual funds.
And believe me, Iā€™ve heard it all before; options
leverage is dangerous, they are too complicated,
they are good for trading not investing, they lack
liquidity and trading costs are too damn high.
Donā€™t get confused. Some of these concerns are
actually legitimateā€¦that is, back in 1994. Fast-
forward 20 years and these arguments simply
donā€™t hold true anymore. I told Ian, that most
investors (and even most investment
professionals) think the same. The overall
industry and investment education is still stuck
in the 90s.
You see, it hasnā€™t been until recently that
options have become a viable choice for
investors.
This is mainly due to improvements in
electronic trading platforms, analytic tools,
technology and competition amongst
exchanges to create better pricing.
I know a mouthful, right? But all these
aspects benefit you, the investor.
In addition, brokerage houses are fighting like
hell for your business, creating a price war,
which works in your favor by the form of
cheaper commissions and transaction fees.
Imagine being an ā€œold schoolā€ investment
professional now having to learn about options.
These ā€œprosā€ are so stuck in their old ways;
theyā€™ll do anything to discourage you from
trading/learning about options.
Itā€™s trueā€¦ Iā€™ve witnessed it with my own eyes.
For example, a couple years ago I was asked
to consult with small hedge fund ($100
million in assets) about using option
strategies to smooth out and enhance
performance.
When I sat down with the fund manager, I
started explaining some techniques that they
could start implementing. Of course, he was
nodding his head as if heā€™d liked what I was
saying.
However, I knew that there was something
missingā€¦my gut was telling me that we were
not on the same page.
Moving on, I started to ask some questions,
only to discover that he didnā€™t even
understand the difference between a call and
put option (the very first concepts you learn
about options)ā€¦I was floored!
My shock started to turn into slight anger.
You see, people put their hard earned money
and trust into money managers like this all
the time. Donā€™t you think they owe it to their
clients to work hard to try achieving the best
results possible?
It still fires me up to this dayā€¦thinking about
that meeting.
In all fairness, it wasnā€™t his fault. The mutual
fund and hedge fund business model is broken.
Sure, their pitch might sound sexy, but all
theyā€™re doing is selling and collecting assets for
a (undeserving high and sometimes hidden) fee.
Letā€™s face it, weā€™ve all been sold on the idea that
we need to hand over our money to an
investment professional. That theyā€™ve got a
plethora of research, proprietary models, signals
and information that give them an
edgeā€¦knowing when to buy low and sell
highā€¦yada, yada, yada.
News Flash!
Less than one percent of managers have beat
index funds over the last ten years. Please,
go back and read that sentence again.
O.K. good - Thatā€™s right folksā€¦and thatā€™s
not just me saying it, this hard to swallow
statistic comes from Motley Fool. In fact,
according to their study in 2013, only ten of
ten thousand actively managed mutual
funds were able to beat the S&P 500
consistently over the past decade.
Like a lamb to the slaughter.
Not only that, but these funds have to be fully
invested at all times. Nothing makes their
greed glands secrete more than the
management fees they stiff you with. The
more money invested, the higher the fee they
collectā€¦
Now, when I asked Ian how this broken
model was working for himā€¦he simply told
me, ā€œJosh, itā€™s notā€. I agreed to meet up with
Ian at a local Starbucks to continue our
discussion at a later date.
Sure enough, a couple weeks passed and
there was Ian at Starbucks, right on time as
we planned. From our previous discussion, he
told me that he knew nothing about options.
However, he did want to make his money
work harder for him. In addition, he was open
to learning about a better, more efficient way
to grow his wealth. After all, he had invested
$200,000 in various mutual funds with subpar
results.
As with anyone I teach, I went over the basics
behind options and how theyā€™re used to
achieve unordinary resultsā€¦all while
skewing the risk/reward in your favor. I later
busted out my MacBook and logged into my
options trading platform.
First, I showed him what an option chain is
(options jargon for a list of all tradable
options for a particular stock)ā€¦I noticed his
eyes started to gloss over.
Believe me, learning about options at first can
seem very overwhelming. There is no shame
if you ā€œdonā€™t get itā€ right away. In fact, Iā€™d be
surprised if you pick up the ball and run.
After all, the reason why most investors stick
to stocks and mutual funds is because they
are so damn easy. Itā€™s the same thing when
you go to the casino and become surrounded
by so many slot machines. Needless to say,
itā€™s a game where the casino has the biggest
edge.
You see, with stocks, you either buy or sell
short and you have a 50/50 shot of making
money. However, with options you can create
odds in your favor from 63%-92%.
Look, I understand options are tough and
there is a learning curve, but if you can create
better opportunities for success with options
than stocks, why wouldn't you take a little
extra time to learn?
Heck, Iā€™ve been doing it for a decade now
and still continue to learn. Here are the four
reasons why you should consider:
Leverage- Use less money to achieve higher
returns. Options provide a better use of
capital and a better return on capital (ROC)
Better odds - Structured option strategies can
create more favorable probabilities of success
than equities
Reduce risk - Structured option strategies
will create max loss scenarios before entering
the transaction. You also reduce risk by using
limited capital and not fully invested.
Versatility: With options, youā€™re not
vulnerable to any specific market condition.
For example, there are strategies for high-
volatile markets, low-volatile markets,
trending and sideways markets. With stocks
you always have to make a directional bet.
Now, when I explained to the hedge fund
manager these reasons, this is what he told
me:
ā€œJosh, this all sounds good, but with what
youā€™re suggesting we would not be fully
invested. Our business model is based on fees
and we make the most being fully invested.ā€
ā€œWeā€™d like to achieve better returns for our
clients, but only slightly better for marketing
reasons. We donā€™t want to do that good for
our clients, because they might not believe it
and we donā€™t benefit. Our compliance officer
suggested options are too risky and we would
need to re-evaluate all of our clients.ā€
This is the reason why I need to teach people
like Ian and you, a betterā€¦more successful
way to investing, because these people arenā€™t
going to be anytime soon.
And, as always, Iā€™ll continue to debunk the
myths about options and investing to all my
readers.
In fact, Iā€™ve decided to do you one better.
After coaching thousands of students and
responding to countless emailsā€¦ I began to
notice a pattern in the questions I was
receivingā€¦a lot of them sounded the same.
I could sense that investors wanted to learn
about options, but were worried that they just
wouldnā€™t get them.
You see, options can be very complicated if
youā€™re not given proper directionā€¦ and if
youā€™re like most people, youā€™re busy with
work, family life and maintaining health.
Letā€™s face it, we just donā€™t have the same free
time we did as kids.
Thatā€™s why I created a super-easy to
understand book, filtering out all the noise,
specifically geared towards those interested in
making the transition to options investingā€¦
for quick and painless results.
Itā€™s called Fearless Income For Leverage,
something Iā€™m very proud of. And I want
anyone who has ever thought about getting
involved with options to read it.
Thatā€™s why Iā€™ve made it so affordable for
everyone to pick up. Not only that, Iā€™m so
confident youā€™ll get valuable use out of it
(maybe even change the way you view
investing forever)ā€¦
Iā€™m offering a thirty day, no questions asked,
money back guarantee if youā€™re not 100%
satisfied. Honestly, what do you have to lose?
Click Here To Purchase The Digital Copy
of My Book 'Fearless Income For
Leverage'
You can even download a free sample before
you decide to buy. Let me know your
thoughts below and how I can help you
understand options better.

More Related Content

What's hot

Systematic Wealth Chapter 2
Systematic Wealth Chapter 2Systematic Wealth Chapter 2
Systematic Wealth Chapter 2superpeter
Ā 
13 Essential Rules For Profitable Investing
13 Essential Rules For Profitable Investing13 Essential Rules For Profitable Investing
13 Essential Rules For Profitable InvestingSpoonFed Investor
Ā 
The Rules Of Direct Mail
The Rules Of Direct MailThe Rules Of Direct Mail
The Rules Of Direct MailJAMES SULLIVAN
Ā 
Peg stocks @ mba becdoms
Peg stocks  @ mba becdomsPeg stocks  @ mba becdoms
Peg stocks @ mba becdomsBabasab Patil
Ā 
Bad Service Secured Options - Top 20 Stock Investing Tips
Bad Service Secured Options - Top 20 Stock Investing TipsBad Service Secured Options - Top 20 Stock Investing Tips
Bad Service Secured Options - Top 20 Stock Investing TipsSecuredoptions
Ā 

What's hot (7)

Systematic Wealth Chapter 2
Systematic Wealth Chapter 2Systematic Wealth Chapter 2
Systematic Wealth Chapter 2
Ā 
13 Essential Rules For Profitable Investing
13 Essential Rules For Profitable Investing13 Essential Rules For Profitable Investing
13 Essential Rules For Profitable Investing
Ā 
The Rules Of Direct Mail
The Rules Of Direct MailThe Rules Of Direct Mail
The Rules Of Direct Mail
Ā 
Thairobbin speedwealth
Thairobbin speedwealthThairobbin speedwealth
Thairobbin speedwealth
Ā 
Investing 101
Investing 101Investing 101
Investing 101
Ā 
Peg stocks @ mba becdoms
Peg stocks  @ mba becdomsPeg stocks  @ mba becdoms
Peg stocks @ mba becdoms
Ā 
Bad Service Secured Options - Top 20 Stock Investing Tips
Bad Service Secured Options - Top 20 Stock Investing TipsBad Service Secured Options - Top 20 Stock Investing Tips
Bad Service Secured Options - Top 20 Stock Investing Tips
Ā 

Viewers also liked

SIZZLE Mailbag No.1 Unusual Options Activity Part I
 SIZZLE Mailbag No.1 Unusual Options Activity Part I SIZZLE Mailbag No.1 Unusual Options Activity Part I
SIZZLE Mailbag No.1 Unusual Options Activity Part IJoshua Belanger
Ā 
Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...
Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...
Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...Joshua Belanger
Ā 
Don't Trade Earnings Before You Read This
Don't Trade Earnings Before You Read ThisDon't Trade Earnings Before You Read This
Don't Trade Earnings Before You Read ThisJoshua Belanger
Ā 
Why I Only Follow Those Who Have Skin In The Game
Why I Only Follow Those Who Have Skin In The GameWhy I Only Follow Those Who Have Skin In The Game
Why I Only Follow Those Who Have Skin In The GameJoshua Belanger
Ā 
Options profit calculator
Options profit calculatorOptions profit calculator
Options profit calculatoroptionsrules
Ā 
How To Trade A Broken Wing Butterfly With Weekly Options
How To Trade A Broken Wing Butterfly With Weekly OptionsHow To Trade A Broken Wing Butterfly With Weekly Options
How To Trade A Broken Wing Butterfly With Weekly OptionsJoshua Belanger
Ā 

Viewers also liked (6)

SIZZLE Mailbag No.1 Unusual Options Activity Part I
 SIZZLE Mailbag No.1 Unusual Options Activity Part I SIZZLE Mailbag No.1 Unusual Options Activity Part I
SIZZLE Mailbag No.1 Unusual Options Activity Part I
Ā 
Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...
Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...
Learn How to Buy Options To Avoid Time Decay Crush & Increase Your Chances fo...
Ā 
Don't Trade Earnings Before You Read This
Don't Trade Earnings Before You Read ThisDon't Trade Earnings Before You Read This
Don't Trade Earnings Before You Read This
Ā 
Why I Only Follow Those Who Have Skin In The Game
Why I Only Follow Those Who Have Skin In The GameWhy I Only Follow Those Who Have Skin In The Game
Why I Only Follow Those Who Have Skin In The Game
Ā 
Options profit calculator
Options profit calculatorOptions profit calculator
Options profit calculator
Ā 
How To Trade A Broken Wing Butterfly With Weekly Options
How To Trade A Broken Wing Butterfly With Weekly OptionsHow To Trade A Broken Wing Butterfly With Weekly Options
How To Trade A Broken Wing Butterfly With Weekly Options
Ā 

Similar to What Every Investor Should Know About Options!

Who else wants to put themselves through an exclusive
Who else wants to put themselves through an exclusiveWho else wants to put themselves through an exclusive
Who else wants to put themselves through an exclusiveRolando888
Ā 
Invest Like a Pro: A 10-Day Investing Course
Invest Like a Pro: A 10-Day Investing CourseInvest Like a Pro: A 10-Day Investing Course
Invest Like a Pro: A 10-Day Investing CourseLucky Gods
Ā 
Penny stock-alerts
Penny stock-alertsPenny stock-alerts
Penny stock-alertsMdAlAmin320
Ā 
Penny stock-alerts
Penny stock-alertsPenny stock-alerts
Penny stock-alertsMdAlAmin320
Ā 
Penny stock alerts
Penny stock alertsPenny stock alerts
Penny stock alertsMdAlAmin320
Ā 
Affiliate monster
Affiliate monsterAffiliate monster
Affiliate monsterShutter Shades
Ā 
How to get into Investing - In My View
How to get into Investing - In My ViewHow to get into Investing - In My View
How to get into Investing - In My ViewRuchira Jayasinghe
Ā 
Warren Buffett: Notes From The Q&A Between Ivey MBA, HBA Students
Warren Buffett: Notes From The Q&A Between Ivey MBA, HBA StudentsWarren Buffett: Notes From The Q&A Between Ivey MBA, HBA Students
Warren Buffett: Notes From The Q&A Between Ivey MBA, HBA StudentsKoon Boon KEE
Ā 
Webnatics values
Webnatics valuesWebnatics values
Webnatics valuesNicholas Ho
Ā 
Fantastic College Admissions Essay Help
Fantastic College Admissions Essay HelpFantastic College Admissions Essay Help
Fantastic College Admissions Essay HelpJoe Osborn
Ā 
Essay Benefits Of Competitive Sports. Online assignment writing service.
Essay Benefits Of Competitive Sports. Online assignment writing service.Essay Benefits Of Competitive Sports. Online assignment writing service.
Essay Benefits Of Competitive Sports. Online assignment writing service.Stephanie Wilson
Ā 
Business principles
Business principlesBusiness principles
Business principlesJeremy Harper
Ā 
Entrepreneurship Reflective Learning Diary
Entrepreneurship Reflective Learning DiaryEntrepreneurship Reflective Learning Diary
Entrepreneurship Reflective Learning DiaryGulcin Yildirim Jelinek
Ā 
Women Pitching: Finesse to Success
Women Pitching: Finesse to SuccessWomen Pitching: Finesse to Success
Women Pitching: Finesse to SuccessSimonAllsop3
Ā 
Mastering the Recession
Mastering the RecessionMastering the Recession
Mastering the RecessionRobert Sprague
Ā 
Stock Picking Strategies
Stock Picking StrategiesStock Picking Strategies
Stock Picking StrategiesJenny Hubbard
Ā 

Similar to What Every Investor Should Know About Options! (20)

Who else wants to put themselves through an exclusive
Who else wants to put themselves through an exclusiveWho else wants to put themselves through an exclusive
Who else wants to put themselves through an exclusive
Ā 
Invest Like a Pro: A 10-Day Investing Course
Invest Like a Pro: A 10-Day Investing CourseInvest Like a Pro: A 10-Day Investing Course
Invest Like a Pro: A 10-Day Investing Course
Ā 
Penny stock-alerts
Penny stock-alertsPenny stock-alerts
Penny stock-alerts
Ā 
Penny stock-alerts
Penny stock-alertsPenny stock-alerts
Penny stock-alerts
Ā 
Landmark financial seoul korea
Landmark financial seoul koreaLandmark financial seoul korea
Landmark financial seoul korea
Ā 
Penny stock alerts
Penny stock alertsPenny stock alerts
Penny stock alerts
Ā 
Affiliate monster
Affiliate monsterAffiliate monster
Affiliate monster
Ā 
How to get into Investing - In My View
How to get into Investing - In My ViewHow to get into Investing - In My View
How to get into Investing - In My View
Ā 
Warren Buffett: Notes From The Q&A Between Ivey MBA, HBA Students
Warren Buffett: Notes From The Q&A Between Ivey MBA, HBA StudentsWarren Buffett: Notes From The Q&A Between Ivey MBA, HBA Students
Warren Buffett: Notes From The Q&A Between Ivey MBA, HBA Students
Ā 
Webnatics values
Webnatics valuesWebnatics values
Webnatics values
Ā 
Fantastic College Admissions Essay Help
Fantastic College Admissions Essay HelpFantastic College Admissions Essay Help
Fantastic College Admissions Essay Help
Ā 
Essay Benefits Of Competitive Sports. Online assignment writing service.
Essay Benefits Of Competitive Sports. Online assignment writing service.Essay Benefits Of Competitive Sports. Online assignment writing service.
Essay Benefits Of Competitive Sports. Online assignment writing service.
Ā 
Business principles
Business principlesBusiness principles
Business principles
Ā 
Beginner
BeginnerBeginner
Beginner
Ā 
Entrepreneurship Reflective Learning Diary
Entrepreneurship Reflective Learning DiaryEntrepreneurship Reflective Learning Diary
Entrepreneurship Reflective Learning Diary
Ā 
Women Pitching: Finesse to Success
Women Pitching: Finesse to SuccessWomen Pitching: Finesse to Success
Women Pitching: Finesse to Success
Ā 
Mastering the Recession
Mastering the RecessionMastering the Recession
Mastering the Recession
Ā 
Isolation is a Good Thing 11-11-10
Isolation is a Good Thing 11-11-10Isolation is a Good Thing 11-11-10
Isolation is a Good Thing 11-11-10
Ā 
Stock Picking Strategies
Stock Picking StrategiesStock Picking Strategies
Stock Picking Strategies
Ā 
10 truths
10 truths10 truths
10 truths
Ā 

Recently uploaded

BhubaneswaršŸŒ¹Ravi Tailkes ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...
BhubaneswaršŸŒ¹Ravi Tailkes  ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...BhubaneswaršŸŒ¹Ravi Tailkes  ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...
BhubaneswaršŸŒ¹Ravi Tailkes ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...Call Girls Mumbai
Ā 
Webinar on E-Invoicing for Fintech Belgium
Webinar on E-Invoicing for Fintech BelgiumWebinar on E-Invoicing for Fintech Belgium
Webinar on E-Invoicing for Fintech BelgiumFinTech Belgium
Ā 
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...sarkh428
Ā 
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdfMASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdfCocity Enterprises
Ā 
Significant AI Trends for the Financial Industry in 2024 and How to Utilize Them
Significant AI Trends for the Financial Industry in 2024 and How to Utilize ThemSignificant AI Trends for the Financial Industry in 2024 and How to Utilize Them
Significant AI Trends for the Financial Industry in 2024 and How to Utilize Them360factors
Ā 
logistics industry development power point ppt.pdf
logistics industry development power point ppt.pdflogistics industry development power point ppt.pdf
logistics industry development power point ppt.pdfSalimullah13
Ā 
In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.
In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.
In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.hyt3577
Ā 
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadhabortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadhsamsungultra782445
Ā 
+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...
+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...
+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...Health
Ā 
Seeman_Fiintouch_LLP_Newsletter_May-2024.pdf
Seeman_Fiintouch_LLP_Newsletter_May-2024.pdfSeeman_Fiintouch_LLP_Newsletter_May-2024.pdf
Seeman_Fiintouch_LLP_Newsletter_May-2024.pdfAshis Kumar Dey
Ā 
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budgetCall Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budgetSareena Khatun
Ā 
fundamentals of corporate finance 11th canadian edition test bank.docx
fundamentals of corporate finance 11th canadian edition test bank.docxfundamentals of corporate finance 11th canadian edition test bank.docx
fundamentals of corporate finance 11th canadian edition test bank.docxssuserf63bd7
Ā 
Dubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai Multiple
Dubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai MultipleDubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai Multiple
Dubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai Multiplekojalpk89
Ā 
Mahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot Girls
Mahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot GirlsMahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot Girls
Mahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot GirlsDeepika Singh
Ā 
Pension dashboards forum 1 May 2024 (1).pdf
Pension dashboards forum 1 May 2024 (1).pdfPension dashboards forum 1 May 2024 (1).pdf
Pension dashboards forum 1 May 2024 (1).pdfHenry Tapper
Ā 
Collecting banker, Capacity of collecting Banker, conditions under section 13...
Collecting banker, Capacity of collecting Banker, conditions under section 13...Collecting banker, Capacity of collecting Banker, conditions under section 13...
Collecting banker, Capacity of collecting Banker, conditions under section 13...RaniT11
Ā 
Shrambal_Distributors_Newsletter_May-2024.pdf
Shrambal_Distributors_Newsletter_May-2024.pdfShrambal_Distributors_Newsletter_May-2024.pdf
Shrambal_Distributors_Newsletter_May-2024.pdfvikashdidwania1
Ā 
Lion One Corporate Presentation May 2024
Lion One Corporate Presentation May 2024Lion One Corporate Presentation May 2024
Lion One Corporate Presentation May 2024Adnet Communications
Ā 
7 tips trading Deriv Accumulator Options
7 tips trading Deriv Accumulator Options7 tips trading Deriv Accumulator Options
7 tips trading Deriv Accumulator OptionsVince Stanzione
Ā 
Responsible Finance Principles and Implication
Responsible Finance Principles and ImplicationResponsible Finance Principles and Implication
Responsible Finance Principles and ImplicationNghiaPham100
Ā 

Recently uploaded (20)

BhubaneswaršŸŒ¹Ravi Tailkes ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...
BhubaneswaršŸŒ¹Ravi Tailkes  ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...BhubaneswaršŸŒ¹Ravi Tailkes  ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...
BhubaneswaršŸŒ¹Ravi Tailkes ā¤CALL GIRLS 9777949614 šŸ’Ÿ CALL GIRLS IN bhubaneswar ...
Ā 
Webinar on E-Invoicing for Fintech Belgium
Webinar on E-Invoicing for Fintech BelgiumWebinar on E-Invoicing for Fintech Belgium
Webinar on E-Invoicing for Fintech Belgium
Ā 
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
NO1 Verified Online Love Vashikaran Specialist Kala Jadu Expert Specialist In...
Ā 
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdfMASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
MASTERING FOREX: STRATEGIES FOR SUCCESS.pdf
Ā 
Significant AI Trends for the Financial Industry in 2024 and How to Utilize Them
Significant AI Trends for the Financial Industry in 2024 and How to Utilize ThemSignificant AI Trends for the Financial Industry in 2024 and How to Utilize Them
Significant AI Trends for the Financial Industry in 2024 and How to Utilize Them
Ā 
logistics industry development power point ppt.pdf
logistics industry development power point ppt.pdflogistics industry development power point ppt.pdf
logistics industry development power point ppt.pdf
Ā 
In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.
In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.
In Sharjah ąÆµ(+971)558539980 *_ąÆµabortion pills now available.
Ā 
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadhabortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
abortion pills in Jeddah Saudi Arabia (+919707899604)cytotec pills in Riyadh
Ā 
+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...
+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...
+97470301568>>buy weed in qatar,buy thc oil in qatar doha>>buy cannabis oil i...
Ā 
Seeman_Fiintouch_LLP_Newsletter_May-2024.pdf
Seeman_Fiintouch_LLP_Newsletter_May-2024.pdfSeeman_Fiintouch_LLP_Newsletter_May-2024.pdf
Seeman_Fiintouch_LLP_Newsletter_May-2024.pdf
Ā 
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budgetCall Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
Call Girls Howrah ( 8250092165 ) Cheap rates call girls | Get low budget
Ā 
fundamentals of corporate finance 11th canadian edition test bank.docx
fundamentals of corporate finance 11th canadian edition test bank.docxfundamentals of corporate finance 11th canadian edition test bank.docx
fundamentals of corporate finance 11th canadian edition test bank.docx
Ā 
Dubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai Multiple
Dubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai MultipleDubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai Multiple
Dubai Call Girls Deira O525547819 Dubai Call Girls Bur Dubai Multiple
Ā 
Mahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot Girls
Mahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot GirlsMahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot Girls
Mahendragarh Escorts šŸ„° 8617370543 Call Girls Offer VIP Hot Girls
Ā 
Pension dashboards forum 1 May 2024 (1).pdf
Pension dashboards forum 1 May 2024 (1).pdfPension dashboards forum 1 May 2024 (1).pdf
Pension dashboards forum 1 May 2024 (1).pdf
Ā 
Collecting banker, Capacity of collecting Banker, conditions under section 13...
Collecting banker, Capacity of collecting Banker, conditions under section 13...Collecting banker, Capacity of collecting Banker, conditions under section 13...
Collecting banker, Capacity of collecting Banker, conditions under section 13...
Ā 
Shrambal_Distributors_Newsletter_May-2024.pdf
Shrambal_Distributors_Newsletter_May-2024.pdfShrambal_Distributors_Newsletter_May-2024.pdf
Shrambal_Distributors_Newsletter_May-2024.pdf
Ā 
Lion One Corporate Presentation May 2024
Lion One Corporate Presentation May 2024Lion One Corporate Presentation May 2024
Lion One Corporate Presentation May 2024
Ā 
7 tips trading Deriv Accumulator Options
7 tips trading Deriv Accumulator Options7 tips trading Deriv Accumulator Options
7 tips trading Deriv Accumulator Options
Ā 
Responsible Finance Principles and Implication
Responsible Finance Principles and ImplicationResponsible Finance Principles and Implication
Responsible Finance Principles and Implication
Ā 

What Every Investor Should Know About Options!

  • 1. What Every Investor Should Know About Options! By Joshua Belanger
  • 2. Often times, I feel like Iā€™m living through an episode of MythBusters. Let me give you a quick overview if youā€™ve never seen this popular show thatā€™s on the Discovery Channel. The show circulates around a group of guys and gals who run elaborate tests (based on science) to prove if long standing rumors, old wives tales, unbelievable stories and myths are true or not.
  • 3. For example, my favorite episode is when they were able to prove that cell phones, iPodā€™s or even laptop computers do not affect flight instruments! Now, Iā€™m not a scientist by any stretch of the imagination. However, Iā€™m constantly myth- busting when it comes to the financial markets. In fact, just a couple weeks ago, at a party, I was dispelling myths about options investing.
  • 4. It is where I met Ian, a successful young guy (in his mid 30s) who owns two dental practices. When Ian asked me what I do for a living, I explained to him that I teach people an efficient, more profitable way to make money with less risk. I went on to explain to him that I use options to create risk/reward scenarios that shift the probability of success in my favor. Of course, he thought options were riskier than stocks or mutual funds.
  • 5. And believe me, Iā€™ve heard it all before; options leverage is dangerous, they are too complicated, they are good for trading not investing, they lack liquidity and trading costs are too damn high. Donā€™t get confused. Some of these concerns are actually legitimateā€¦that is, back in 1994. Fast- forward 20 years and these arguments simply donā€™t hold true anymore. I told Ian, that most investors (and even most investment professionals) think the same. The overall industry and investment education is still stuck in the 90s.
  • 6. You see, it hasnā€™t been until recently that options have become a viable choice for investors. This is mainly due to improvements in electronic trading platforms, analytic tools, technology and competition amongst exchanges to create better pricing. I know a mouthful, right? But all these aspects benefit you, the investor.
  • 7. In addition, brokerage houses are fighting like hell for your business, creating a price war, which works in your favor by the form of cheaper commissions and transaction fees. Imagine being an ā€œold schoolā€ investment professional now having to learn about options. These ā€œprosā€ are so stuck in their old ways; theyā€™ll do anything to discourage you from trading/learning about options. Itā€™s trueā€¦ Iā€™ve witnessed it with my own eyes.
  • 8. For example, a couple years ago I was asked to consult with small hedge fund ($100 million in assets) about using option strategies to smooth out and enhance performance. When I sat down with the fund manager, I started explaining some techniques that they could start implementing. Of course, he was nodding his head as if heā€™d liked what I was saying.
  • 9. However, I knew that there was something missingā€¦my gut was telling me that we were not on the same page. Moving on, I started to ask some questions, only to discover that he didnā€™t even understand the difference between a call and put option (the very first concepts you learn about options)ā€¦I was floored!
  • 10. My shock started to turn into slight anger. You see, people put their hard earned money and trust into money managers like this all the time. Donā€™t you think they owe it to their clients to work hard to try achieving the best results possible? It still fires me up to this dayā€¦thinking about that meeting.
  • 11. In all fairness, it wasnā€™t his fault. The mutual fund and hedge fund business model is broken. Sure, their pitch might sound sexy, but all theyā€™re doing is selling and collecting assets for a (undeserving high and sometimes hidden) fee. Letā€™s face it, weā€™ve all been sold on the idea that we need to hand over our money to an investment professional. That theyā€™ve got a plethora of research, proprietary models, signals and information that give them an edgeā€¦knowing when to buy low and sell highā€¦yada, yada, yada.
  • 12. News Flash! Less than one percent of managers have beat index funds over the last ten years. Please, go back and read that sentence again. O.K. good - Thatā€™s right folksā€¦and thatā€™s not just me saying it, this hard to swallow statistic comes from Motley Fool. In fact, according to their study in 2013, only ten of ten thousand actively managed mutual funds were able to beat the S&P 500 consistently over the past decade.
  • 13. Like a lamb to the slaughter. Not only that, but these funds have to be fully invested at all times. Nothing makes their greed glands secrete more than the management fees they stiff you with. The more money invested, the higher the fee they collectā€¦
  • 14. Now, when I asked Ian how this broken model was working for himā€¦he simply told me, ā€œJosh, itā€™s notā€. I agreed to meet up with Ian at a local Starbucks to continue our discussion at a later date. Sure enough, a couple weeks passed and there was Ian at Starbucks, right on time as we planned. From our previous discussion, he told me that he knew nothing about options.
  • 15. However, he did want to make his money work harder for him. In addition, he was open to learning about a better, more efficient way to grow his wealth. After all, he had invested $200,000 in various mutual funds with subpar results. As with anyone I teach, I went over the basics behind options and how theyā€™re used to achieve unordinary resultsā€¦all while skewing the risk/reward in your favor. I later busted out my MacBook and logged into my options trading platform.
  • 16. First, I showed him what an option chain is (options jargon for a list of all tradable options for a particular stock)ā€¦I noticed his eyes started to gloss over. Believe me, learning about options at first can seem very overwhelming. There is no shame if you ā€œdonā€™t get itā€ right away. In fact, Iā€™d be surprised if you pick up the ball and run.
  • 17. After all, the reason why most investors stick to stocks and mutual funds is because they are so damn easy. Itā€™s the same thing when you go to the casino and become surrounded by so many slot machines. Needless to say, itā€™s a game where the casino has the biggest edge. You see, with stocks, you either buy or sell short and you have a 50/50 shot of making money. However, with options you can create odds in your favor from 63%-92%.
  • 18. Look, I understand options are tough and there is a learning curve, but if you can create better opportunities for success with options than stocks, why wouldn't you take a little extra time to learn?
  • 19. Heck, Iā€™ve been doing it for a decade now and still continue to learn. Here are the four reasons why you should consider: Leverage- Use less money to achieve higher returns. Options provide a better use of capital and a better return on capital (ROC) Better odds - Structured option strategies can create more favorable probabilities of success than equities
  • 20. Reduce risk - Structured option strategies will create max loss scenarios before entering the transaction. You also reduce risk by using limited capital and not fully invested. Versatility: With options, youā€™re not vulnerable to any specific market condition. For example, there are strategies for high- volatile markets, low-volatile markets, trending and sideways markets. With stocks you always have to make a directional bet.
  • 21. Now, when I explained to the hedge fund manager these reasons, this is what he told me: ā€œJosh, this all sounds good, but with what youā€™re suggesting we would not be fully invested. Our business model is based on fees and we make the most being fully invested.ā€
  • 22. ā€œWeā€™d like to achieve better returns for our clients, but only slightly better for marketing reasons. We donā€™t want to do that good for our clients, because they might not believe it and we donā€™t benefit. Our compliance officer suggested options are too risky and we would need to re-evaluate all of our clients.ā€
  • 23. This is the reason why I need to teach people like Ian and you, a betterā€¦more successful way to investing, because these people arenā€™t going to be anytime soon. And, as always, Iā€™ll continue to debunk the myths about options and investing to all my readers.
  • 24. In fact, Iā€™ve decided to do you one better. After coaching thousands of students and responding to countless emailsā€¦ I began to notice a pattern in the questions I was receivingā€¦a lot of them sounded the same. I could sense that investors wanted to learn about options, but were worried that they just wouldnā€™t get them.
  • 25. You see, options can be very complicated if youā€™re not given proper directionā€¦ and if youā€™re like most people, youā€™re busy with work, family life and maintaining health. Letā€™s face it, we just donā€™t have the same free time we did as kids. Thatā€™s why I created a super-easy to understand book, filtering out all the noise, specifically geared towards those interested in making the transition to options investingā€¦ for quick and painless results.
  • 26. Itā€™s called Fearless Income For Leverage, something Iā€™m very proud of. And I want anyone who has ever thought about getting involved with options to read it. Thatā€™s why Iā€™ve made it so affordable for everyone to pick up. Not only that, Iā€™m so confident youā€™ll get valuable use out of it (maybe even change the way you view investing forever)ā€¦
  • 27. Iā€™m offering a thirty day, no questions asked, money back guarantee if youā€™re not 100% satisfied. Honestly, what do you have to lose? Click Here To Purchase The Digital Copy of My Book 'Fearless Income For Leverage'
  • 28. You can even download a free sample before you decide to buy. Let me know your thoughts below and how I can help you understand options better.