Reach Max Acceleration with this Options Strategy – Wall Street Daily

Louis BaseneseThere’s always a bargain to be found in the stock market… if you know where to look.Senior analyst Jonathan Rodriguez recently revealed an incredible trading strategy that can unlock massive gains in stocks.A strategy that most investors have never heard of: stock replacement.This tactic can put exponentially greater profits in your pocket on a stock’s rise — with far less capital at risk than buying stock.Today, he’ll finish off the series with a detailed look at the second of two ways to play it.Ahead of the tape,Louis Basenese
Chief Investment Strategist, Wall Street Daily
High Returns on Low VolatilityJonathan RodriguezAs an options trader, I love volatility.Volatile periods marked by big swings in stocks provide traders with the fastest opportunities to book large profits.But when the sea of stocks calms after a highly volatile period, there’s opportunity there, too.As you recall, stock replacement — using options — offers investors the ability to profit on a stock’s upside at a significant discount to a stock’s market price.This technique can also radically reduce risk, too.That is because buying high-delta call options that closely follow a stock’s movement can net you serious profits — at a fraction of the cost of owning shares.In my last two articles, I’ve gone over the use of in-the-money (ITM) call options to replace stocks.Today, we’re going to talk about an even cheaper way to replace your stocks in a low-volatility market.Technique #2 — OTM callsAs you’ll recall, a key factor in an option’s price is volatility. The more volatility the market expects, the higher an option’s price will be.And vice versa: Low volatility makes for cheap options.I previously went in-depth with in-the-money calls. With a strikes price that’s below the underlying stock’s current price, these options are intrinsically valuable. These options have value because they can be executed to buy shares at the strike price, and then you can sell the shares at the market price for a profit.Today I want to cover out-of-the-money (OTM) calls.Donald Trump… The Best President EVER?They said Trump would only help the top 1%…

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