Blog
- By Mike Bolin
- Updated April 15, 2024
7 min read
- Reviewed by Angelica Rieder
- Fact checked by Lucien Bechard
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How much money can you make trading options? That depends on your account size and trading strategy. You could make 20%-50% or more per trade on naked calls and puts. On credit spreads, traders look to take profits around 50%, and debit spreads anywhere from 10-$50% or more. It would be best if you got started, but ideally, $10,000 or more.
Options Trading Course
In this course, you'll learn how to buy and sell options, options assignment, vertical spreads, the most popular strategies, and how to prepare for live trading action.
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Table of Contents
- How Much Can You Make Trading Options?
- Basics on How Much You Can Make Trading Options
- Ivan’s Story
- Ivan’s Rules
- Does Account Size Matter?
- The Universal Secret to Making Profit
How Much Can You Make Trading Options?
How much money can you make trading options? It’s realistic to make anywhere between 10% – $50% or more per trade. If you have at least $10,000 or more in an account, you could make $250 – $1,000 or more trading them. It’s important to manage your risk properly by trading them.
Let’s face it; we’re all drawn to thestockmarket to make money, end of the story. You’re lying to yourself if you say otherwise.
Perhaps you dream of the day you can flip your boss the bird, wake up in a hammock on a beach, or race hedgehogs in Spain – I don’t know, I’m not judging.
But, what Idoknow is it’s going to cost money. And maybe that’s why you decided the stock market is your answer.
So, the million-dollarquestion is, “How much can you make trading options? You might not like my answer.
I don’t know.
Basics on How Much You Can Make Trading Options
Before answering how much you can make trading options, you need to understand what optionsare. Options have an unfair perception because people don’t take the proper time to learn how to trade them. They’re a great way to make money with a small account.
One option contract controls 100 shares. As a result, you’re paying the premium to control 100 shares instead of outright buying them. Options give you the right but not the obligation to buy (call) or sell (put) a contract at a set price within a certain time frame.
Did you know that options have strategies that allow you to make money in any market? Yes, even sideways markets. That’s part of the appeal of options trading.
There are a lot more moving parts to options trading than trading stocks. Then, you’ll be ready to face the options head-on. And hopefully, it answers how much you can make trading options for yourself.
COURSE | |||
---|---|---|---|
DESCRIPTION | Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action | Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading | How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading |
INCLUDED | Daily watch lists • Trade rooms • Trading scanners • Discord • Live streaming Day Trading > | Daily watch lists • Trade rooms • Options scanners • Discord • Live streaming Options > | Futures target levels • Trade rooms • Real time teaching • Discord • Live streaming Futures > |
Ivan’s Story
Now that I have your attention let’s start with what not to do. Here’s a little story from Ivan. 2006, Ivan quit his job and started trading full-time with a 100k account.
So far, so good. Over five years, give or take, his account dwindled to around 14k. So far, not so good. What happened? For those who don’t know Ivan, he’s highly emotional and compulsive.
Which unfortunately spilled over into his trading. He made the rookie mistake of trading on gut instinct and trigger happy, jumping in and out of trades. That affects how much you can make trading options.
He knew, in theory, how to trade, but when the rubber hit the road, his emotions were behind the wheel. Emotion will always affect profit and loss. Hence, answering the question of how much you can make trading options isn’t easy.
With 86k down the drain, what did Ivan do? He didn’t drive the car off the road, although I’m sure it passed his mind.
He had an AHA moment, pulled it together, and realized he needed a system or a set of rules to govern his behavior. No more guessing, no more hoping and wishing.
No, he decided to structure his trading operations and give himself a set of rules or modus operands; with the 14k he had left to trade with, he made his fortune. In his own words, here are Ivan’s “rules.”
Ivan’s Rules
I would risk about $450 per trade, allowing me to place about 15 trades (using leverage), which meant I would have about 15 chances to increase my account to a more decent level.
When (and if) I reached such a level, I would decrease my risk and leverage, ensuring that risk became less volatile and more linear.
I would be completely okay with failure. If I were to blow that remaining amount off my account, I was ready to bite the bullet, return to my old employers, and beg them to take me back again. There is an old expression: the end justifies the means.”
To make a long story short, Ivan grew the account. As the account increased, he slowly reduced position size because conserving capital became more of a concern.
Fast forward to today, and that account is well past the 300k mark. So, how much can you make trading options?
Does Account Size Matter?
Honestly, the size of your trading account has no bearing on whether or not you are or will be a successful options trader. Firstly, you need to view market success as a function of whether or not you followed your system or rules. Secondly, is your system profitable?
If the answer is yes and yes, you’re successful. So, if your account is $2,000 and you consistently make $200 monthly, you should consider yourself a successful options trader.
Even though you obviously can’t quit your job just yet, you’re successful.
Focus on trading the markets, not on making money.Which might put a damper on how much you can make trading options.
Some people start trading with a 25k or 100k account and quickly lose all their money- remember our good friend Ivan? In contrast, other traders start with 1k and, in time, build a substantial trading account.
Your success lies not in the size of your trading account but in your beliefs about successful trading. Trust me, the money will follow if you learn to trade the market successfully by following your rules.
If you can afford one contract on this chain, that may be all you need.
The Universal Secret to Making Profit
What do people who make much money in this world have in common? What about Tiger Woods and Bill Gates? Or how about Warren Buffet and Venus Williams?
At first, you might say “nothing” other than they all make a ton of money. But what is the one thing that makes these people so successful while the rest of us struggle to get out of bed in the morning? One word: specialization.
“Specialization is the secret.”
What sets apart those who make a lot of money from us is they focus on the one thing. And they practice it again and again and again until they get the results they are looking for.
All the people I have just named have “mastered” one thing. I’m confident they had ups and downs along the way, but they did not let that bother them; they just kept going. Furthermore, you might find a great book called “The One Thing” interesting; I sure know I did.
If you need more help, take ouroptions trading course.
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Bullish Bears April 4, 2024
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Our chat rooms willprovide you with an opportunity to learn how to trade stocks, options, and futures. You’ll see how other members are doing it, share charts, share ideas and gain knowledge.
Our traders support each other with knowledge and feedback. People come here to learn, hang out, practice, trade stocks, and more. Our trade rooms are a great place to get live group mentoring and training.
TRADE ALERTS “SIGNALS”
The Bullish Bears trade alerts include both day trade and swing trade alert signals. These are stocks that we post daily in our Discord for our community members.
These alert signals go along with our stock watch lists. Our watch lists and alert signals are great for your trading education and learning experience.
We want you to see what we see and begin to spot trade setups yourself.
REAL-TIME STOCK ALERTS SERVICE
We also offer real-time stock alerts for those that want to follow our options trades. You have the option to trade stocks instead of going the options trading route if you wish.
Our stock alerts are simple to follow and easy to implement. We post entries and exits.
Also, we provide you with free options courses that teach you how to implement our trades as well.
STOCK TRAINING DOESN’T NEED TO BE HARD
Stock training doesn’t need to be hard. But it sure feels hard when you don’t know where to turn for legitimate knowledge. There are tons of places to learn, but what makes us different?
Well, for starters, we’re just real everyday people who like trade stocks. We’re not gurus portraying a fancy lifestyle of cars and jets and beaches. Can you obtain those things with what we teach you? Sure you can. Is that what motivates us when teaching you how to trade?
Nope. What we really care about is helping you, and seeing you succeed as a trader. We want the everyday person to get the kind of training in the stock market we would have wanted when we started out.
WHY WE’RE DIFFERENT
What else makes us different? When it comes to the stock market, we’ve won, we’ve lost, we’ve lived, and learned. We’ve been through the ups and downs in the market and figured out what really matters. The Charts…Candlesticks = PRICE ACTION! We’ve created a site that passes all this knowledge on to you.
We don’t charge you an arm and a leg for the stock training we give you. We charge a modest amount that goes towards running our day-to-day operations and paying for our invaluable team moderators that are passionate about teaching YOU!
That’s about it. We could charge more, but we have a pay it forward, give back mentality. It’s not about the money. The best and most important thing for us is YOU. We want to feel good about what we do, and the results and reviews speak for themselves.
Those emails we get, the feedback, the success we see. That is what our educational trading community is all about. We hold no secrets back. Our trading edge is your trading edge.
STOCK TRAINING DONE RIGHT
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In our stock trading community, you’re going to get it all. Futures, options trading, and stocks. Not just penny stocks either. Small, mid, and large caps. Each day we have several live streamers showing you the ropes, and talking the community though the action.
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TRADING STOCKS IN THE BULLISH BEARS COMMUNITY
Yes, we work hard every day to teach day trading, swing trading, options futures, scalping, and all that fun trading stuff. But we also like to teach you what’s beneath the Foundation of the stock market.
Tell you the TRUTH about how the market works. The importance of controlling your emotions and having a proper mindset when trading. We’re really passionate about teaching you this stuff!
Money isn’t our #1 priority in life. YOU are. Our members come first. Making sure you get comfortable with trading is our priority.
We have members that come from all walks of life and from all over the world. We love the diversity of people, just like we like diversity in trading styles. It creates an environment much like a university or college.
TRADING ROOMS AND LIVE STOCK TRAINING
Each day our team does live streaming where we focus on real-time group mentoring, coaching, and stock training. We teach day trading stocks, options or futures, as well as swing trading. Our live streams are a great way to learn in a real-world environment, without the pressure and noise of trying to do it all yourself or listening to “Talking Heads” on social media or tv.
We will help to challenge your ideas, skills, and perceptions of the stock market. You will learn and grow as a trader. Every day people join our community and we welcome them with open arms. We are much more than just a place to learn how to trade stocks.
Feel free to ask questions of other members of our trading community. The Bullish Bears are a very helpful crew. We realize that everyone was once a new trader and needs help along the way on their trading journey and that’s what we’re here for. To give you a hand up along your trading journey.
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FREE ONLINE TRADING COURSES
If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.
We are opposed to charging ridiculous amounts to access experience and quality information.
That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too!
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Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person!
STOCK TRADING COURSES FOR BEGINNERS
The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.
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