The Case for Options Trading
So why should I spend the time to learn to trade options? I mean, it seems like a long and complicated hill to climb. The answer is simple: once you learn to trade, you will have a skill you can use for the rest of your life to generate an income stream. But the main reason you should do it is simpler: Control.
And Control really means FREEDOM. Everybody works for somebody, or if you are the boss then everybody works for you. Which means your income always relies on other people. Furthermore, you can get fired or your business can struggle or even go under at any time. I think COVID proved that nothing in life is guaranteed. So wouldn’t it be comforting to be the sole employee and boss of your own company? Where you make money on your own. Where you rely solely on yourself and NOBODY else. How great would that feel?
That feeling is why you should learn to trade options. Because it is the only “job” in the world where you rely on absolutely no one but yourself. YOU make money or YOU lose money, but the key word is “YOU.” There is no fear of getting fired or laid off, there is no concern about keeping your workers motivated and productive. This is a singular pursuit that ALLOWS you the opportunity to make money on your own merit without relying on anyone else.
The other major reason you should learn to trade options is so you can go from being a PASSIVE to an ACTIVE part of your financial future. What does that mean? Maybe you already have a 401K, an IRA, a brokerage account. If you do that’s great, because everyone should have some long-term financial plan. But the piece of the puzzle that most people don’t realize is nobody knows the future. Here’s the big question that many people don’t consider when they have these kinds of long term investments. Will the money be there when I need it?
Let me explain. If you have an account already, I’m sure you have some stocks that are winners and some that are losers. And maybe you think that some stocks are “obvious” winners now and will “guarantee” you a return in the long run. If you think that, you are fooling yourself. Do you remember the 2nd largest bank in America, Washington Mutual, or Lehman Brothers (founded in 1850) going out of business during the 2008 Housing Crash/Mortgage Crisis? How about Neiman Marcus, JC Penny and Hertz going bankrupt during COVID? Nothing is guaranteed. Maybe Apple seems like a no-brainer to you. Did you know that the day Apple hit the stock market (IPO’d), the price dropped soon afterwards. How long do you think it took Apple’s stock price to get back to its original IPO price? 18 YEARS!!!!
The point of the story is there is no guarantee your stocks will go up over time. And secondly, even if they do, what if you needed to sell your stock and live off that money during a crash like 2008? Or 2020 during COVID?
If you’re like me and Murphy’s law always seems to hit you, then we’ll probably both need our money at the worst possible time. Wouldn’t you feel better if you knew how to ACTIVELY generate income through option trading instead of being a PASSIVE investor and hoping that everything works out for you?
And that is my point. Learning to Trade Options gives you the ABILITY to GENERATE income at any time in your life whether you are working, unemployed or just waiting to time the market to cash out your retirement. Which is why I truly believe it’s not only nice to have the ability to trade options and generate your own revenue stream on a regular basis, but I’d say it’s a requirement!
But whatever you do, Learn to Trade Options because it Gives you options, Kal