Automatic Options Trading Leverages Your Time While the Options Leverage Your Money

Automatic options trading is the only time efficient way to make money in this sideways market

Option trading has grown in popularity, especially with the individual investors over the course of the past ten or twenty years. Unlike other forms of trading that can require large amounts of venture capital, options trading can be accomplished with often a very small initial outlay. This small initial outlay of course allows control of a much greater chunk of a company’s stock than would otherwise be possible. Small movements in the market are then amplified because of the increased leverage that options provide.

Recent market activity has shown wild swings in both directions over the last several months. In this sort of market it is virtually impossible to make money owning stocks directly. The only way to successfully and consistently make money in a market trading sideways is to have the flexibility to trade both the up-swings and the down-swings. That means the best trading opportunities will be found by trading in options.

Whether you’re buying or writing puts or calls each position you take in the market must be monitored carefully in order to maximize profits. Unfortunately monitoring each position you take requires both the time commitment to track the prices of the underlying stock, the option itself, and the market as a whole. Throw in your news feeds and competitor research and you may as well lock yourself in a closet and never see the light of day again!

If you want to continually trade options then in addition to your ability to leverage your buying power you also need to think about the ability to leverage your time. One way to do that is to rely on an automatic options trading program.

Automatic options trading has been helping investors automate the process of trading options by linking a third part research /advisor account with brokerage accounts. A subscription service (the third party) brings the daily monitoring and trade execution to the brokerage account. The investor selects what service to buy (Momentum, QQQQ, Global ETF, or some other program), then allocates a dollar figure or percentage of his portfolio to the service (or #shares, etc), selects a trade size and that’s it. The automatic option trading program handles the rest with your broker. Trade alerts are sent daily to either the investor or, at his discretion, directly to his broker. Many major brokers are setup to take such trade orders directly from third parties once the proper paperwork is in place.

Smart investors have been making money using automated programs with third party advisors for several years now. Option picks have been auto-traded with major brokerages since at least 2003. Good programs allow investors to monitor ongoing trading activity in real time and take full control back at any moment.

Automatic options trading helps wealthy investors free up considerable amounts of time and calms their nerves while still giving the improved returns provided by options. Good programs are constantly looking for better entry and exit prices for subscribers’ trades. Someone trading options today has learned to leverage their money. If they think about learning to leverage their time they find automatic options trading can be both a safe and effective way to manage that part of their portfolio they wish to expose to options trading.

Trading options should only be done by experienced, sophisticated investors, and only with that portion of an investor’s portfolio that is to be exposed to risk. Previous returns are no guarantee of future results.



Source by Martin Sage

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