Everyone wants to make money, and some of us will take too much risk along the way. But let me teach you how to trade stock options the right way.
While you can make a million dollars option trading; traders need discipline, patience, and the right options trading strategy to be consistently profitable.
What percentage of option traders make money?
If you learn how to trade options, you will not make a million dollars overnight.
To make a million dollars with options trading, you need to build up your account and implement the best options trading strategy.
My personal target is to earn ~35% per year trading options. While everyone wants to make the most money possible, traders who try to earn too much usually end up trading too aggressively and assuming too much risk.
When trading too aggressively, traders oftentimes lose money in the process. Options traders that promote get-rich-quick schemes or shortcuts to success are not teaching you a sustainable strategy to earn consistent profits.
The most successful options traders make money by exercising patience and do not over trade.
Are there millionaire options traders?
Yes, there are millionaires who trade options and who win almost all their trades.
I'm a prime example of an options trader who worked hard to earn his success. I graduated from an Ivy League university and spent five years working as an investment banker to become successful.
Despite being surrounded by some of the greatest trading minds in the world, I found himself giving into greed and trying to make more money as quickly as possible. Through various setbacks and challenges, David Jaffee learned the best options trading strategy for success.
David Jaffee understands the sting of failure and losing money firsthand, and he has taught more than 2,000 members how to avoid making his same mistakes.
Most Successful Options Strategy
So, how can you make a million dollars option trading?
You could try a wide range of strategies that promise quick results.
Or, you can follow the most successful options strategy taught by myself.
In just 12 easy-to-follow lessons, I break down everything you need to know about options trading.
My online options trading course is designed to benefit all experience levels, from new traders to experienced traders.
Learning the most successful options strategy requires your time and investment. Students have to be committed to learning, growing, and improving themselves in order to reach their goals.
How to Make a Million Dollars Trading Options
Ready to learn how to make a million dollars trading options?
If you want to make a million dollars trading options, David Jaffee teaches some core principals to help you start earning money and he also has excellent reviews from his options trading students.
1. Limit Your Information Sources
We live in a time where there is too much information and not enough action.
You want to turn yourself into a creator and not a consumer.
Additionally, bad information can cost you a lot of money!
2. Evaluate Your Account Size
If you have an account size below $15,000 you want to have a watchlist with five securities on it.
At any one time, you will have a maximum of two trades on, preferably one.
If you have a larger account ($100,000+), then it may be best to have positions on 4 or 5 securities at once.
3. Use Your Capital Efficiently
Selling naked options may enable you to easily manage positions, but you have to use your capital efficiently.
If you sold a naked option with an expiration of around six weeks out, you can wait two or three weeks to see how that option is doing.
Let’s say you sold an option on META when it was trading at $300, then META goes up to $320 two weeks later.
There is no point for you to wait an incremental four weeks for that option to expire if, that option that you sold when META was trading at $300, is now showing you an 80% profit.
Now that META has appreciated in value, and the option has decreased in price, you're essentially receiving 80% of the premium in one-third of the time.
Learn Successful Options Trading
David Jaffee provides a considerable amount of options trading information for free through his blog and YouTube channel.
If you are ready to get serious about options trading and invest in your financial future, David Jaffee provides a comprehensive online options trading course.
By learning successful options trading with David Jaffee, you can create winning trades and protect against inherent human greed.
Frequently Asked Questions (FAQs)
Can you make a million dollars trading options?
Yes, but you'll need to take your time and be slow and methodical, while mitigating risk.
If your goal is to make $1 million a year by trading options then you'll need to start with an account size of ~$3 million.
While it's definitely possible to turn a small amount of money into a lot by trading options, the reality is that you don't want to gamble with your money.
Placing high probability trades, and hitting singles, while hedging your portfolio and buying options at market extremes, provides the highest probability of success.
Are there option traders who made millions?
Yes, there are, but there are also many who lost money.
Focus on reducing your risk and hitting singles, and, over time, your returns will compound. You can sell puts and calls, and buy options at market extremes to hedge your portfolio.
Can option trading make you rich?
I believe it's best to target a monthly return of about 3% while trading options. A 3% monthly return will not make you rich, but the goal is to be consistently profitable and to learn a valuable skill, not to gamble and try to hit home runs (which usually causes traders to lose money).
Are there Option Trading Success Stories?
There are many successful options traders. They usually sell option premium while also buying options during market extremes to hedge their portfolio and reduce portfolio volatility.
How traders make millions?
Remember that the more money you're striving to make, the more risk you'll assume. It's best to hit singles and target a monthly return of about 3% so that you protect your capital while trading the best option trading strategy.