Stock Options

        A stock option is a contract between two parties to buy or sell 100 shares of a stock on a set date at an agreed upon price. When an investor enters into a stock option contract, they have the “option” to fulfill the contract, but they are not obligated to fulfill it so long as they close out the contract before expiration.

        There are two types of options, puts and calls. When an investor purchases a put option they are betting that the stock price will fall. Purchasing a call option is a bet that the stock price will rise. Since 2008 I have developed my own personal strategies of when I purchase, sell, or close an option contract. These strategies have resulted in a 4 year 95%* success rate. If you would like to learn more about my approach to options trading and the techniques I employ, you can learn all about them in my O4I 101 class.

        The beauty of trading options is that you don’t need a large trading account, years of trading experience, nor time to watch the market all day long. Also, you may trade as little as one single contract at a time. And, since there are many ways to trade options contracts, the inherent risks can be mitigated by using specific strategies which I demonstrate regularly in my ColeTrades LIVE trading sessions.

* Success rate based on all trades closed between Jan. 1, 2018 - Dec. 31, 2021