How to Get Rich Trading Options

Options are a financial instrument that you can use for a number of different purposes: as protection against expected moves in an underlying instrument such as a stock; as a way to use leverage to control more of a stock than you want to buy outright; as a way to use your existing investments to earn additional cash; and many other uses. But, can you get rich trading options? The answer, unequivocally, is yes, you can get rich trading options. If you’re like most people reading this article, this is probably the answer you were hoping for.

The obvious next question then is, how can I get rich trading options?

Here’s what you could do if you have cash but not a lot of buying power: you could use all of your available cash to buy calls on your favorite growth stock with the expectation that the stock will absolutely skyrocket before your options expire, perhaps after next week’s earnings report. Since an option contract represents 100 shares of the underlying stock, you can profit from controlling a lot more shares of your favorite growth stock than you would if you were to purchase individual shares with the same amount of cash. When your chosen stock flies to the moon, sell your options for a massive profit. Rinse and repeat and before you know it, you will be buying that mansion you have had your eyes on since forever.