Turbo Charge Your Profits With Options

I know many people who trade stocks. Most of the US house holds have stocks in various companies. Have you tried options? Many people think Options are only for professional traders and the big boys. It is not so. Let me explain in simple terms what are the pros and cons of options. Here is how the option works. Assume that you see a house in your street and the owner is planning to sell it retiring and moving to Florida within one year. The current market price for the house is $,. You go and talk to the owner Brad and tell him Hi Brad; I would like to lock in this house for the price of $,; I will have the right to buy this house for this price for one year (i.e. till December ). For this I will pay you $.. Now you and Brad come to an agreement; Brad gives you the right but not an obligation to buy the house till December at a price of ,. You have the right and not the obligation that is important which means if the house price goes down you dont need to buy it at K. Now in end of , the house prices came up and now Brads house is now worth $,. Now you call a real estate agent sell it for , and give , to Brad and pocket a profit of , (minus your option premium of $). So your net profit is $, on an investment of $. That is like % return on your money. If you had bought the house at , and sell it for , you might have made , or about % return on your money. The options trade is explained in the author's website completely with examples. We encourage the users to read the complete example and start getting more profit.