Adjustment Strategies with Options

By Johnny M Junior


I've been playing the trading options game for about a decade now, and I've made a lot of friends along the way. I've met numerous option traders, probably somewhere in the hundreds, all working along side me on this long time endeavor to achieve success on the stock market and the truth is, only a handful were making money. It makes me wonder why there are so many people out there playing this game and investing in the stock market when most of them only lose their capital.

I find it fascinating. I've noticed that most traders are just looking for a good challenge. I know I do. I enjoy all the research, analyzing trades, looking at probabilities. To me working with options and the stock market are my playground. I love the challenge and that it always forces me to move forward. There's always room for improvement!

Creativity is another reason why so many investors stick with options trading, even If they don't get their desired results. With an open mind, one can come up with an infinite number of option strategies. To me, this makes the world of option trading a never ending frontier, waiting to be explored.

But the question remains. Why are there so many option traders out there that do not make money? The common answer to this question is that your average option trader does not know how to properly adjust an option position. While this statement is somewhat true, I don't think it's actually the answer that we are looking for.

And now for the real problem; Option traders don't normally fail because of their adjustment strategies. In actuality, most experienced option traders are great at money management and make proper adjustments to their portfolios. The down fall begins at the start of a trade. No matter how good of an option trader or risk manager you are, you will probably never have long-term success trading options unless you learn to construct option trades that are low risk from the start. This is the key to becoming a consistently successful option trader.

I've recently come to this realization by studying with San Jose Options. Through their course I've learned to construct trades that are safer than anything I had ever seen before, and even though the risk is much lower, the probability is still very high and the return is as well. So if you feel that you are making all the right adjustments on your option trades, and you are still losing money, then most likely the problem is not in your adjustments. Your trades are set up for failure once they are initiated. Good luck with your option trading, and once again, it's very nice to have met yet another trader along the way.




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