Is high-tech the biggest opportunity in today’s market?
Or are these high tech stocks absurdly expensive?
When looking at design microprocessors (ARMH) ARMHoldings, who is selling at 107 times its earnings, Netflix selling 71 times its earning, Acme packet selling at 116 times its earning, and so many other high tech companies that seem way too expensive!
Are they doomed to dive at more reasonable levels?
Is history going to repeat itself?
Remember the dot.com bubble in 2000?
Are you terrified about the doomed day scenario and thinking you better get out now, while profits are still running?
Well, if you are like so many other investors who think this scenario is inevitable, maybe it’s time for you to consider an alternative that will give you an edge on this play.
not only on this play, but on any situation that way concern uncertainty in the market.
The best way to play this market is by using spreads.
A spread is a strategy that involves simultaneously the buying and the selling of option contracts.
Without going to deep into details about spreads or option trading, this article is written to make investors well-informed, that by using such strategies like option spreads, you will not only secure your investment, but you will also know how much you can gain as well as how much you can lose before even put in on the trade.
In other words, this means no matter what the market does, you won’t be plunging with it, if ever it happens to crash!
Some investors think they are protected by placing a stop limit order. Although it’s a very good idea, you might be extremely disappointed when waking up in the morning to see your stock plunging over night and ending way below the limit you have set.
On the other hand, when placing a spread strategy, you will not be affected by the after hours market downfall.
The world of option trading, is not suitable for all investors, but if you are an active investor, or if you want to avoid the downfall of any market crash, then you should unquestionably learn about option trading and how to use spreads.
To my opinion, using these types of strategies is the best way to increase the rate of return in your portfolio.
Most investors who aren’t familiar with option trading, may think option trading is too risky. However, if you take the time to learn option trading, you will have a whole different opinion about the risk and rewards of using these strategies. Once you are comfortable with trading options, you will discover strategies that are much less risky than buying and selling stock.
As an active investor, I can tell you that option trading is as safe as trading any stock. There’s always a certain degree of risk involve any trade no matter it’s normal stock trading or option trading. My best advice for you, if you want to learn and get involved with option trading is to use a virtual platform for at least 9 months. Believe me, you will not regret it. I have seen so many investors attending one or two option seminars and start trading in the real world, right afterwards. This is a huge mistake. I urge you not to do this. You will lose much more than you will gain. The business of investing and making money demands knowledge and wisdom. So be wise and get your knowledge by practicing with a virtual platform. Take the time to learn and understand at your own pace, if you are looking for the best place to learn option trading, then go to the OIC web site.
They have all the information, tools, and courses you will need to learn about options, and guess what? It’s free!
You can use their own virtual trading platform, and they even have a 800 phone service to answer any question related to option trading.