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What Type of Option Trader Are You?

There are a few different types of option traders.  Some option traders are very aggressive, and they can really be called day traders.  This type of trader uses a lot of money, and they are in and out of trades all day long.  Option traders that trade this way do not usually hold a position overnight. Its a very stressful way to trade and requires constant attention.  I once had a conversation with a day trader who was working about 60 to 80 hours per week in order to successfully trade options this way.  But I wonder how successful he really was.  Because if he was making so much money, then why did he call me to learn a new way to trade options?

Another type of option trader is one that trades for income but is not sitting in front of the computer all day long.  There are different types of strategies that an option trader can utilize to trade like this.  One of the more popular strategies is called a Credit Spread.  Some people do Credit Spreads on stocks and others do Credit Spreads on the indices.  Either way you do Credit Spreads, they are still very risky.  Credit Spreads cannot handle the large debacles that constantly occur in the stock market.

Those are the two most common types of option traders.  There is another type out there which is not quite so common.  This would be the option trader that trades over earnings reports.  This is a pretty exciting way to trade options.  It can actually be quite rewarding, but there is a lot of risk and luck involved.  Back testing can help to predict what might happen over earnings, but there is still a lot of uncertainty involved with this type of trade.

All of the above-mentioned styles involve a lot of risk.  There is another type of option trader who is managing his savings account.  This type of trader would normally wish to take on less risk than other types.  We find two of the lowest risk strategies that she we will ever find with options is the Broken Wing Butterfly and the Unbalanced Condor.  These two strategies can allow an options trader to construct trades that begin with very minimal risk.  In most cases only 1 to 2% risk is theoretically taken on a given trade.

San Jose Options offers a course focused on the low-risk type of option strategies mentioned above.  While some options mentoring courses are slowly starting to catch on, San Jose Options has been training students on these strategies for many years.  They specialize in the Broken Wing Butterfly and Unbalanced Condors. Their course is designed for those who are retired and those who wish to invest with options without risking as much as the usual option trader does. If you would like to learn safer option strategies, then I highly recommend that you check out their options mentoring program.

For more information please visit SJ Options Trading .