Why I Love Options? Every good trader I know uses options on at least some of their trades, and with good reason. Options add almost infinite new dimensions to your trading and open doors that simply don’t exist with other instruments. To start, options have a wildly asymmetric return profile. When you buy an option, your loss is limited to the price of the option. But due to the inherent built-in leverage of options, your returns can be hundreds or even thousands of percent in a short period of time. (There’s a caveat here: If you trade complex trading strategies, your risk of significant loss increases… but for simple long positions in options, your risk is limited to your initial investment.) The high probability of having an option expire worthless makes them a poor choice for a large, oversized position. But it makes them really well suited to smaller “rinse and repeat” trades. You can afford to have a few drop down to zero so long as your gains on the winners are large enough to compensate. The same embedded leverage also allows you to trade outsized positions while only putting up relatively small amounts of capital. Remember, one options contract covers 100 shares of stock. So, with a relatively small number of options, you can control a potentially very large underlying position. And finally, if you believe as I do that volatility will be trending higher in this Age of Chaos, options provide all sorts of new ways to potentially profit. Volatility is a major component of options pricing, and a spike in volatility can often mean a spike in options prices… and opportunities. Up until now, I’ve kept it fairly high level, explaining why options are a great trading vehicle. But if you want some actual trades to act on, I recommend you have a look at what our Freeport Society friend Jonathan Rose is up to. Jonathan is the guy I personally turned to when I needed an options recommendation in Freeport Alpha, and he’s in the trenches five days a week looking for profitable options trades. You can see what he’s doing, completely free, at MastersinTrading.com. But if you really want the good stuff, I recommend watching the encore presentation he’s making tonight at 8 p.m. Eastern. Simply click here to register. Options aren’t for everyone. And if you lack experience trading, options really can be risky. But that’s exactly why you need an expert like Jonathan in the trenches with you. The alternative for those robbed of the opportunity to build wealth through homeownership… or those robbed of retirement because of the fickle nature of long-term investing… is far worse. To life, liberty and the pursuit of wealth, | 
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