If you’ve never done it before, the idea of trading options as an investment strategy or doing any type of investment strategy might feel intimidating.
Investing, for many, comes as nothing but an after-thought.
And one that is often far too late.
But what if trading stock options could become a top strategy for your investment portfolio with the pure intention of creating you more positive cash flow?
Or what if trading stock options could become your primary business?
My name is Ryan Coisson and I’m a long-time entrepreneur and options trader who specializes in helping folks demystify options into a dead simple repeatable process.
Why do I love options trading so much?
Simply put, it checks all the boxes of what he believes is the perfect business.
Here’s what I mean…options trading is a business:[+] That you can run in a matter of a few hours a week from anywhere in the world. [+] Involves no employees. [+] Has little to no overhead. [+] Requires zero sales and marketing, which is perfect for an introvert like me. [+] Is immune to competition or market changes. [+] Can be highly profitable in any economic environment. [+] Can be scaled continually to reach different income goals.
Most importantly, the business allows me to live the lifestyle I desire and gives me true peace of mind.
That’s something I was hard-pressed to come by when me and my former business partner were growing numerous eCommerce brands following what I know feel was a flawed structure and setup.
Those days involved living in one of the most densely populated cities in Asia, traveling to China several times, and having over 50 employees in offices in China and the Philippines.
While I learned a ton during this process and we had some big wins.
This took me out of my preferred element of smaller towns and lots of nature adding to the increased pressure, responsibility, and stress of running a larger business with numerous employees.
And all the joys and troubles that comes with.
Today, I enjoy both time and financial freedom utilizing this model.
If the opportunity to build something great or bolt this strategy onto what you already do to potentially get higher than average ROIs* in only a matter of a few hours a week by leveraging the power of stock options intrigues you, pay close attention.
In the next few minutes, you’ll discover:
● Why is trading stock options so attractive in the first place.
● What are options and how do they work?
● Examples of options trading and the key pitfalls to avoid.
● How you can quickly learn the art and science of options trading.
What Attracted Me into the Lucrative World of Options Trading?
Like most entrepreneurs, I wanted to have control over my own destiny, enjoying the freedom and responsibility of deciding my own fate.
As an introverted 17-year-old who was a self-admitted technophobe, I wasn’t sure where to start.
You see, this was in the early 2000s where there was no Facebook, Twitter, Instagram, no webinars, or any of the popular tools we have today.
Back then, the internet was new, dial-up was the only way to get on, and the dot-com bubble had recently burst.
Plus, I felt like I didn’t have many marketable skills.
Maybe you can relate.
The idea of doing any form of sales and marketing paralyzed me with fear because I was so introverted.
I also experienced the pain of building an income stream online (I hesitate to call it a business) that did really well yet was more fragile than a chandelier.
Unfortunately, that business fell victim to dramatic change.
It gave me a real reality check about what mattered when creating a business that was the perfect fit for me because as I so enthusiastically believe…
“If you want to have long-term success you need to find the right business for you, not just a business that can make money today.”
That’s when I dug into running an options trading business much more aggressively.
The thing is it took up only a few hours each week, and I was able to begin with very little money to my name.
Well as I got my feet wet, things just clicked.
In the first 90 days of trading stock options, I generated a 300% ROI* on my initial investment with individual trades garnering ROIs on average of 30-70% in a few days to a few weeks, which left me feeling quite inspired and motivated.
This built the foundation to what I’ve been able to do and continues to do now some 17 years later.
Of course, my results may not be typical and your results will vary.
Yet what I’ve done and what I’ve seen my students do has been quite inspiring.
The Importance of Skill Sets – What No One Tells You
In life and business, there is one thing that we know for certain, change. At its core, change is all around us and it isn’t necessarily good or bad.
It’s just change.
We must understand in business especially companies also change, adapting to the current market climate.
New names emerge as others fade.
While change can be scary, it usually breeds new opportunity.
But it also comes with its fair share of challenges as businesses are forced to evolve to survive.
Peeling back the layers of a business we uncover that for a business to run smoothly, there must be folks executing particular skills and a true leader at the helm.
In our little online world these skills include things like email marketing, business development, content creation, advertising, product fulfillment, customer support, product creation, and on and on.
With that in mind, the biggest such challenge generally comes when the required skills to success change.
These take time and work to develop and master.
There’s no telling when the requirements might change again and in the online world, those changes could be all the time. One thing we do know is that in our world from year to year, they are often quite dramatic.
If you’ve been marketing online for any time, you know this.
The never-ending list of Google updates shifts the flow of organic search traffic from one site to another.
There’s constant evolution in advertising on sites like Facebook, Instagram, Google, YouTube, and Twitter.
Don’t forget about all the new platforms that launch constantly or even simple things like the continual changes with content marketing and email marketing deliverability.
Keeping up with these changes can literally become a full-time job.
It’s the reason many people invest significant sums into new training, masterminds, attending live events, and even hiring personal coaches or mentors.
To me this is arguably the biggest advantage of choosing to trade stock options.
You see, the same strategy and tactics I utilized in the early 2000s are still the same ones I use today and will continue to utilize for years to come.
There has been no real evolution to which he needed to adapt.
The only difference is in how the market is moving, and whether it is up, sideways or down.
One huge benefit to what I do and teach others with these stock options strategies is that no matter what the market is doing, there is an opportunity to take advantage.
You can thrive in any market environment if you know what you are doing.
Also, competition becomes an afterthought.
In the online space, businesses fight for both consumers’ attention and dollars, competing at every turn.
With stock options trading, you don’t have to worry about competitors.
There really aren’t any.
It’s just you and your broker.
Your focus is on your strategies and processes, not anyone else’s.
It’s so much easier to run your own race and stay in your lane because no one is trying to come and take your market share putting you out of business.
For those who don’t want to build or manage a team, lack the skills or the desire to master numerous new skills needed to run a business to keep up with the change, trading options is clearly a potential solution to consider.
It is simple, repeatable, proven, and most importantly it doesn’t change over time.
What Are Options and How Do You Trade Them?
Before delving into the actual concept of trading stock options, a rundown of the components involved could be beneficial.
At the end of the day options are incredibly simple and we will be discussing call and put options here.
● Options are essentially contracts that give investors the right but not the obligation to buy or sell an underlying security (such as ETFs, indexes, or securities) at pre-designated prices, limited to specific timeframes.
● They’re bought and sold on the options market, and folks all over the world are currently doing this inside their brokerage accounts.
● When you buy an option contract, you control 100 shares. So one option contract allows you to control 100 shares.
● “Call options” give you the right but not the obligation to purchase an underlying security at a predetermined price on or before a particular date.
● “Put options” give you the right but not the obligation to sell an underlying security at a predetermined price on or before a particular date.
Unlike stocks, options do not represent an ownership stake in a company.
One could exercise an option on or before its expiration date to acquire or sell the shares.
That said, with these strategies I never actually exercise an option.
This is for a very specific reason, but we’ll get into that shortly.
At its core, buying an option translates to betting on whether a stock will go up or down.
• If you believe a certain stock is going to go up in price soon use a Call option to capture leveraged appreciation.
• If you believe the price of a certain stock will go down soon use a Put option to capture leveraged appreciation.
Options trading is usually done with bond or stock market securities, but also potentially with ETFs.
You’ll need to go through a brokerage like as Interactive Brokers, Fidelity, E*Trade or any other similar broker to carry out trades. But folks all over the world can leverage this.
We have students around the globe from Canada, to Australia, to South America, Europe and beyond.
To help you understand options trading more, you need to understand something called the strike price.
It’s the price at which the holder of an options contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying security when the option is exercised.
Strike prices can be “in the money”, “at the money”, or, “out of the money”.
For call options, if the strike price is less than the stock price it is “in the money.”
If the stock price and strike price are the same, it is “at the money.”
If the strike price is more than the stock price it is “out of the money.”
When it comes to put options, the inverse is true.
“In the money” refers to a strike price beneath the stock’s current price. “Out of the money” means the strike price is above the current share price.
How Options Work in Real Life – A Few Examples
This is where things get really fun and I suspect the proverbial aha moment will start to click for you so make sure you pay very close attention.
There are different options trading strategies you could apply.
I believe in keeping it super simple and focuses on only Put and Call options for the most part.
What you do is, of course, up to you, but here are some examples that may help illustrate the process.
They could also help you avoid some of the common mistakes people make when they’re starting out.
First, let’s use an example to illustrate the power of options and why we use them for leveraged appreciation.
If a stock price is $100 per share, 100 shares would cost you $10,000 ($100 x 100).
If the stock price then goes up $1 you have made $100, which is a 1% profit.
If you buy call options on the very same stock at the same time, you will pay about (price varies) $500 ($5 option premium x 100). This $500 controls all 100 shares of the stock.
If the stock goes up $1, your option may also go up $1 (varies according to the particular option).
This $1 movement is 20% of the initial price paid for the option.
With leveraging options you have made 20% on the same stock using options instead of the 1% gain by owning the stock!
This is the power of options and leveraged appreciation.
Now of course it can work against us in the other direction too, which is why we must utilize specific strategy to minimize any downside risk.
More on that later.
A real life example…
Let’s say you believe Starbucks (SBUX) is going to go up in value in the short-term. The current price is say 74.00 so to buy 1,000 shares it would cost you $74,000, which is a fairly significant investment.
Instead, if you decided to leverage a call option you could buy the right but not the obligation to purchase shares of Starbucks at an in the money strike price of $72.50.
Remember in the money means there is intrinsic value already built in.
In this example, it means there is already a $1.50 (current price of $74.00 – $72.5) of intrinsic value. So, if we were to exercise the option we could pay $1.50 less per share than it is on the market right now.
To have this right but not the obligation we have to pay an option premium, the current option premium on the SBUX $72.5 (strike price) call option with an expiration date of June 21 ‘19 is only $3.70.
Remember, when we buy a contract we control 100 shares.
To calculate the price we pay, we take the option premium price and multiply it by 100.
That gives us: $3.70 x 100 = $370
Now in this example, we want to control 1000 shares. So, we need to multiply accordingly.
Ten contracts ($3.7 x 1000) gets us to the fact that we would pay a premium of $3,700 to control 1000 shares instead of $74,000.
That’s only 5% the cost by the way.
Now here is where it gets really fun.
Say Starbucks increases in value by $5 like it recently has.
With the stock, you could have a 6.75% ROI, which isn’t too bad considering it took a short-time for Starbucks to increase in value.
But with leveraged appreciation, the option premium shoots up to say $5.95 from $3.70, which is an increase of $2.25 or a whopping 60.8% ROI.
That’s nearly ten times as much if you would have just purchased the stock.
And these are types of short-term movements I love to capture and make in-depth video case study after case study for my students.
Pretty exciting, right?
When Should I Exercise the Option?
I personally focus on short-term profits through leveraged appreciation using time-tested proven principles, strategies and repeatable processes all designed to maximize profits and minimize losses.
To accomplish my goals, there is no reason ever to exercise the option and acquire or sell the security.
Rather, I sell the option contracts to other investors on the open market to achieve higher than average returns.
This what has allowed me to systematically get ROI’s as high as nearly 400% in a matter of months, weeks, or even days sometimes. Remember, my results are not a reflection of what you should expect and your results will vary. We make no claims to the results you’ll see. And of course there are times where I take a loss on a trade too.
That said, some of my students have reported even higher ROI’s than what I generally see.
“Nothing makes me happier than seeing students apply the proven frameworks that eliminate the guesswork of options trading to do even better than I do.”
Of course, there are also some common mistakes you should avoid:
● Thinking you’ll need to wait until the contract’s expiration date is a big one. You can exercise your right to buy or sell at any point during the contract. Do what makes the most sense for your conditions. Remember that I personally never exercise my options but rather sells the options to other investors on the open market.
● Not understanding time decay. As an option gets closer to expiration, the option premium can decay. This is why I personally have a rule to never be in an open options position before a certain period of time leading up to expiration. This is part of my exit strategy planning that helps me ensure I can maximize profits and minimize losses over the long-haul.
● Speaking of exit strategies. Failing to have a solid exit strategy in place is a big no-no when it comes to options trading. You need to know when to pull the plug if things are going poorly. And if you reach your goal, be sure to know when to quit while you’re ahead. I have several checklist type strategies I teach my students to make sure they know how to plan their exit and protect profits or minimize losses.
● Buying an out of the money option. This can sometimes be a cheaper option. However, in general I prefer to utilize options that are in the money 95% of the time. They have intrinsic value already and generally appreciate much faster, which can give one a greater ROI.
Learn this Skill Once, Use it for Life
Obviously, all of the usual income and opportunity disclaimers apply here. However, if the idea of generating cash flow using a highly-repeatable process that works in any market environment without having to worry about any of the headaches of a normal business appeals to you, it might make sense to learn how to trade stock options.
One of the most attractive features of this business is that it is a skill that you can quickly learn no matter what your background or where you live.
Once you have it, you can use it over and over for decades to come.
Plus, it is a skill can easily teach to your children or even grandchildren.
I launched a training course called The PB Code (The Perfect Business Code) in January of 2018 after perfecting the system that I started implementing in the early 2000s.
The results have been incredibly rewarding.
People often ask me why I would be willing to teach others this skill.
It’s a matter of passion.
My passion for teaching and seeing others thrive is one of the biggest driving forces in my life now. It gives me meaning and a sense of purpose knowing I’m equipping folks with the skills that can change their lives as well as the lives of their whole families.
Freedom begets even more freedom.
When they know that no matter what, they will thrive financially, people feel free to pursue their passions.
That might mean starting other businesses, supporting causes that matter to them or spending their time in fulfilling ways.
That, indeed, might be the perfect business.
And nothing is stopping you from doing the same.
Want to Learn More?
Looking to learn more about what I’m doing and how me and my students use options to run the perfect lifestyle business?
Get on the wait list for the autumn 2021 enrollment of the PB Code.