I was doing one of my webinars and I got this question:
“ I owned a call and the price of the stock went up but my option price went down! I hate options!”
I get this question all the time.
Here’s the problem that so many option traders do and cause pain and losing money: They don’t understand what makes options move!
There are many great reasons to trade options, I gave some a couple of days ago. (You can read it here.) So I am a big fan of options. I actually like them more than stocks!
So you should NEVER trade options without understanding what moves options.
That means that you should understand the Greeks. They are delta, gamma, theta, and vega. These concepts often intimidate people so they never learn them. They look intimidating but really aren’t.
They are the key to understanding why options move the way they do. Understanding the Greeks will tell you about how much money you will make or lose when you trade options.
Trading options without understanding the Greeks is like trading with a blindfold on.
It’s easy to learn the Greeks!
There is a lot of info for free on the Internet. Or, better yet, you can take our amazing upcoming live seminar, Options Success School. Click here to claim your discounted ticket!