June 16th, 2020

Options Give You Options

"When you come to a fork in the road - take it."

Having options in life is imperative. It's no different when it comes to investing in markets. When you apply options contracts trading to your pool of investment optionality, you open up a whole new world of possibilities. Trading options will open up your investments to a world of what-if scenarios:

  • What if you could buy insurance for your securities and portfolios the same way you buy insurance for your house? With options trading, you can.
  • Want to swap that around and become the insurance company and sell premiums that never get cashed? With options trading, you can.
  • Want to get paid to buy a stock at a lower price than it exists at today? With options trading, you can.
  • What if you could trade a million dollars worth of stock for 1/20 of the cost and still get the same profitability if the trade works out? And what if you could limit your downside max loss on that 1/20 at the same time? With options trading, you can.
  • What if the security you're analyzing is range bound and nowhere lately and you still want to make some money while you wait for a move? What if you could sell options on both sides of the market to generate income while you wait? With options trading, you can.

Buying and selling options contracts gives you more options. It sounds silly, but it is quite true. Institutional investors, insurance companies, hedge funds, and proprietary traders use options every day to enhance their portfolio returns, protect their portfolios and individual security trades, and even speculate with limited cash at risk. So why can’t you do the same? 

Now you can – and this is exactly why the Options Lab was created. The Lab was built to put all of the capabilities of the options universe directly into the palm of your hand. It's super easy to use. First you tell it what security you're currently evaluating and the scenario you think will happen with the market. Then, using its inherent algorithmic programming and advanced computing capabilities, the Lab will search the entire options universe (including all strikes and all durations available) to create the most optimal strategies for that scenario for you AND explain them to you so that you can understand your ‘options’. There's no limit to the scenarios you can create.

But I don’t understand options and isn't there all sorts of crazy terminology associated with them like theta, vega, rho, delta, and gamma? We've got you covered. Not only do you NOT have to learn all of those things to use the Options Lab, the programmed logic of the Lab automatically factors the most complicated mathematics into the calculations, including all the Greeks, risk parity formulas, time decay for duration maximization, and more. You don’t even have to learn all the intricacies of options in order to use the Lab. Plus, on every potential options trade presented, the Lab explains all of the different components of the trade in real time, including the outlook, max loss, max gain, risk, time decay, assignment risk, break even, volatility impact and more.

If you really want to dig into options and begin to learn the different definitions, factors, and mathematical calculations behind options, we also offer over 200+ articles in our market knowledge base specifically dedicated to options and options trading. For example, simply type in Gamma and you'll get every article associated with Options Gamma in our knowledge base instantly.

Don’t limit your options. Expand them. Access the Options Lab today. Option Education
TagsOptionsMacroAlgorithmsTechnical LearningGeneral InvestingPortfolio Management