Overview

You don’t have to have months and months of professional trading training in order to make an imcome in this arena, if you are willing to focus on learning the fundamentals and then the strategies that minimize your downside.  One of the best ways to do that is to learn options trading. Option Income System is designed to teach you how to earn money consistently.  However, let me strongly emphasize (pay close attention to this statement) you will have times that you will take a loss.  No one wins every time.  In fact, literally everyone who has any type position in the market has losing days.  The idea with a good system like Option Income System is to average positive gains each month/season/year.

The Advantage of Options

With the correct system you can properly learn to trade options in a manner which will drastically increase the probability that you’ll consistently make money, a much larger return on your investment than the average return you’d achieve buying and holding any kind of stock/mutual fund/bond/index, etc.  Option Income System is one of the educational tools on the market today that really focuses on teaching you how to do that.  Let me say again, and I hate to be redundant, but that means making money over time, not necessarily on every position, nor every day, etc.  You have to be able to stomach losses from  time-to-time. Even so, once you understand and are comfortable with that, this is a very good system for learning options trading.

The other advantage of trading options is ‘time.’  What I mean by that is you don’t have to stare at your screen all day, every day, in order to trade options.  It doesn’t requre near the intensity that day trading the underlying stock/commodity/index requires.  In other words you’ll learn how to put your position on correctly and the system will work for you. Yes, Option Income System will teach you every single step to do this properly.

Recommendation

Is this system the only system that provides this information?  No, of course not.  However, it’s a real good value for its training.  It teaches everything you’ll need to know, not just by a professional trader but by a teacher, someone who knows how to provide proper instruction.  So, I’m recommending serious consideration of this product. 

Binary Options Tradingat UFX Bank has been simplified to either “Up” or “Down” to denote a deal closing above or below the specified contract amount. UFX Bank traders have the potential to have a return of up to 72% on a correct option. An attractive feature of the innovative UFX Bank platform is the bonus received for an incorrect prediction. A loss still renders users a 15% return on their original investment.

In addition to Forex Option Trading, one of the great features of UFX Bank is that they also offer traders the option of trading in commodities. The last few years have seen huge fluctuations for oil, gold, silver and other commodity prices. This is an amazing opportunity which allows UFX Bank traders to get in on a market that enjoys considerable movement.

UFX Bank (http://www.ufxbankk.info) use ParagonEX as their platform of choice. This is an advanced and highly reliable user-friendly web/browser based platform that provides accessibility through their website. UFX Bank provides the most up to date charts and feeds which is essential to success in this industry, as any professional trader knows.

Through the UFX Bank website clients have access to tutorials, daily outlook videos, daily market updates, trade recommendations, tips, and strategies. This is extremely popular and can be very useful to UFX Bank market participants of all levels. Gold and platinum clients also have additional features available to them, such as live market alerts and market signals sent via SMS, to name a few.

Additional features and benefits UFX Bank provides its customers:

No commissions and no fees Fixed market spreads Over 40 Currency Pairs Commodities trading Binary options trading $100 Minimum deposit One-on-one chat with Forex experts Remote assistance and personal coaching Advanced site security Customer support available 24 hours a day Great selection of payment options

Forex Options Trading platforms like UFX Bank have raised the standard with state of the art innovation, leading the online trading industry through simplicity, service and low risk.

To learn more about UFX Bank see below;

To trade binary options online, a prospective client  should first register with a binary option broker online. Binary option brokers are much online but I do recommend some a very good one which you can get here.The next thing an investor would do is to select an underlying asset,the time of expiry and the direction in which the investor thinks the price of the asset would go. An asset could be an index (Nasdaq), currencies( e.g. GBPUSD, USDJPY), stock( e.g. Microsoft) or commodity(e.g.Gold). There are usually lots of assets in binary option trading. The time of expiry for each trade depends on the choice made by the investor and could range from an hour to weeks.The direction of the asset is decided by the investor. If the investor, thinks that the asset would go up, he would simply by a CALL option and if he thinks the asset would go down, he would simply buy a PUT option.

When an investor decides the market would go up or down in a specific time, he waits to get the result after the expiration of the time.If after the expiration of the time, his option expires above the strike price in a CALL option or goes below the strike price in a PUT, his option is considered in-the-money. Otherwise, if his option goes below the strike price in a CALL or above the PUT,his option is considered out-of-money. Note a strike price is a price that the investor sees before placing his trade.He later predicts the price would increase or decrease and judgement is done based on the strike price.

The payout in binary options is on the high side and has made trading binary options very lucrative. You could earn as much as 65%- 81% on your stake if you win and when you loose, you loose your stake. This has made binary options less risky and more lucrative than Forex. If you place a trade (CALL) in binary option say for EURUSD which was initially at a price of 1.3550 (strike price) and at an expiry time of 30 minutes with an investment of $1000. If the trade is won (1.3700), you get a return on investment of $810 which makes a total of $1,810 in 30 minutes. I must say, this is mouth- watering. The calculation above also works for the PUT option.

There are no limits to how many trade you can place daily,thus you have thousands of opportuinites to continue to earn.To get started, you would have to register with a very good broker. I recommend WINOPTIONS. They provide an excellent and easy to use platform,training for beginners and good customer relationship. They also give you about 50% of your initial deposit and add to your account to give room for you to make more.You would need to open an account, deposit your money and get their training resource. To open an account today, click here.

Success in stock and options trading requires knowledge, hard work, and discipline. It isn’t easy and it isn’t quick. But success in stock and options trading is quite achievable; you don’t have to be a rocket scientist. You don’t have to know “the secret”.

The pricing of stock and index options is rooted in probability distributions – the classic bell shaped curve. When I buy or sell an option, the price I pay or receive is derived from an estimate of the probability of that option’s worth at a point in the future. One of my favorite options strategies is the iron condor spread. Recently, I established an iron condor spread on the Russell 2000 Index (RUT) with 690/700 call spreads and 560/570 put spreads with the RUT at $633. The probability of the index closing at a value below $690 at expiration was 86% and the probability of RUT closing at a value above $570 at expiration was 91%. This looks like an excellent trade with a high probability of success.

If we were to construct a trade just like this every month, we could expect to achieve our maximum profit of $3,200 about 86% of the time, but take the maximum loss only 14% of the time – so far, so good. We can compute what is known as the “risk adjusted return” or the return we could expect on average over a large number of trades by:

Risk Adjusted Return = [(0.86) x (3200)] – [(0.14) x (16800)] = $400 or 2%

So we would expect to roughly break even or even lose a small amount over time after placing the iron condor spread on the Russell 2000 Index month after month. But this should not be surprising when we consider that the pricing of options is fundamentally rooted in the probability distributions.

So is all of this talk about options trading just a scam? Is it possible to make money trading options? As in many things in life, the answer is “Yes… and no”.

All options strategies, over time and many trades, will lead to the same result: a return close to zero or perhaps even a little negative after commissions and slippage. But it is possible to shift the probabilities in your favor. Assume for a moment that you have discovered a method of adjusting your iron condor spreads so that the maximum loss you take in the months where the index moves against you is limited to an amount equal to our maximum gain in a good month. Now our risk adjusted return equation looks much more promising:

Risk adjusted return = [(0.86) x (3200)] – [(0.14) x (3200)] = $2,304 or 14%

Now we have a trading system that has a probabilistic edge. In fact, this is consistent with the experience of many options traders who started trading the iron condor and thought they had found a wonderful high probability trading strategy. Then the market moved against them for one or two months and they found that they had lost more money than all of their gains to date.

In fact, profitably trading the iron condor, or any options strategy, is quite feasible. But it is only feasible when you have a robust risk management system incorporated into your trading plan. Beware the marketing of the “best” trading strategy that is going to solve all of your problems. That is an illusion.

Let’s consider Check Point Software [CHKP]. Assume you bought 100 shares of it on July 30, 2010. That would have been a great entry because the price was $29.48 and it’s now $51.35. Your gain is close to 75%, $2187.00. For tax reasons you do not want to sell now. However, on this coming Friday, April 14, 2011 its earnings report is due before the open.

You are concerned. While it’s a great stock, what if the report is disappointing? What if the price increase prior to the reporting date has made it overbought? Disastrously, what if as a result Check Point is downgraded by Monday? A downgrade could easily result in more than a 10% price drop on Monday, the 17th. A 10% price drop would be over $500 and would take away about 25% of your profit.

Ow, you should sell an Out-of-the-Money July $52.50 Call. It would convert your trade to a Covered Call and bring in $225 with the sale. This is inadequate for providing the necessary protection. Insurance, in the form of a $50 May Put will cost $137. The income from the Call will pay for this insurance. The purchase of the Put converts the Covered Call to a Collar.

As long as you keep the Collar, your profit will be limited to $2380 no matter how much Check Point rises. But, your worry doesn’t concern giving up additional potential profit. It’s focused exclusively on a possible downgrade. But, with this Collar, your profit cannot fall below $2130.

If the earnings report is good and you feel Check Point has further to go, you can remove the Collar. This might cost $400-$500, depending on how well Check Point price responds to the report. However, the real opportunity arises if there is a downgrade.

Assume its price has fallen 10% to $46.21. Your Put has grown substantially in value. At the same time, the Call you sold has dropped from $2.25 to $0.46. You can buy an additional Put, the May $45. Its cost will be about $110. Your total option expense would be close to $25.

If the price stays at $45 or higher, your maximum profit would be limited to $2020. With the downgrade it’s much more likely the price will continue to fall. But, with this additional Put, your income would start accruing at a rate of $100 for each $1.00 in price drop below $45.

With this not-so-rare scenario, maybe bad news can be good news.

Let’s recap. When you hold a stock that you don’t want to sell and a situation arises that could threaten your profit, a Collar provides an inexpensive trading strategy for protection. If the threat materializes, you do not have to bail out. An additional Put allows your profit to grow further if the stock reverses.