The Nuts, a poker expression you may be familiar with. If you haven’t heard of it, the Nuts are the strongest possible hand. If you want to learn a very powerful trading strategy that brings a lot of profit, you should know about unusual options activity
The excitement of knowing that you’re unbeatable is a great feeling when playing poker. Unfortunately, to get the nuts you’ll need some inside information. That is not legal.
It’s true, I don’t have a favorite trade.
As a matter of fact, it is important to me that I do not put myself in the position of having a single poor trade ruin my trading accounts. Why is it so frustrating to me when people send emails asking for advice on my best ideas or current trades?
The fact is that I realize success involves much more than just a trade.
Such a question is motivating to me. I know that it’s important to continue the work I’ve done over the years – that’s empowering individual investors to face the financial market with confidence.
I think it is important that you get base hits, and be consistent. Derek Jeter only had 24 homeruns in a given season. But he has had 3,300+ hits over his entire career. It pays to be consistent over the long term.
Even though trading unusual options can be a very exciting activity, it is not for everyone. As a trader, I mainly use the tool as a way to find new ideas and create trades that I believe have optimum risk/reward.
Investors are too eager to take advantage of options in order to become rich. Then, usually after they get burned…they’ll ask me for advice on how to make steady and constant returns with options.
As soon as they learn that the market is difficult to navigate (at the beginning )…), instead of looking at the huge returns, they focus on how to reduce the losses in their account.