Did you miss our interview with options trader and author Jeff Augen last weekend?
“The only reason options are mentioned in the book is because of the point I was making for stock traders, people who buy and sell individual company stock.”
“Almost always, almost 100% of the time, it would always be better to structure a trade that hedges with options, or uses options in some way.
“I think very few people understand that for any stock trade that they have, there is an equivalent options trade that is better hedged and much (more) likely to deliver more profits.”
Click here to access our latest Big Saturday Interview with options trader, Jeff Augen, author of Trading Realities: The Truth, The Lies and The Hype In-Between.
“(The book) is designed so that any stock trader … can learn how he could do a better job stock trading with options around his stock position.”
Trading Realities, however, is much more than just another book about trading options.
Says Jeff Augen:
“People will click a mouse and spend hundreds of thousands of dollars (on a stock) more quickly than 30,000 (on a new car).”
“So I decided this would be a good topic for a book. I wanted to really go into the dynamics of investing and what you need to know and how complex it is and how the markets have changed and the right way to structure positions.”
Pick up a copy of Jeff’s book, Trading Realities, at the link below.
And to listen to our conversation with trader and author Jeff Augen, click here.
“Let’s take Apple since I’ve been talking about Apple. You could sell, every single month, a call option at the money, at the strike price where the stock is trading. So if Apple is at $340, you could sell a 340 call.”
“You could do that every single month. And the premium from that call adds up over the course of the year to something like $160. So if you are going to own the stock, why wouldn’t you just own the stock and sell that at the money call every single month?”
“Because unless the stock declines by more than $160 dollars, you have a cushion. And unless the stock rises by more than $160, then you’ve made the right decision because just owning the stock wouldn’t be better.”
“It’s not complicated. You could sit down for ten minutes and read about it and understand this simple trade.”
Jeff Augen is also the author of Microsoft Excel for Stock and Option Traders: Build Your Own Analytical Tools for Higher Returns.
To hear the entire 35-minute interview with Jeff Augen, trader and author of Trading Realities: The Truth, The Lies, and The Hype In-Between, click here.