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Why trade Options?

Trading Options can help you reduce risk and lock-in profits in all types of markets.

Throughout his four decades of trading, NEoWave founder and trading advisor Glenn Neely has experimented with a wide variety of trading options. In fact, "trading Options" is one of those! While every strategy has its pros and cons, he found that, at times, trading Options can be useful as a well-performing investment strategy and can serve a purpose in your overall portfolio.

Glenn Neely began researching Options when 3 of the 4 markets he had followed for decades went sideways for 3 years. Trading those markets was a frustrating, ongoing challenge. He thoroughly researched this complex trading strategy and, eventually, "cracked the code" to successfully apply Options strategies. In doing so, he discovered that trading Options can help you reduce risk and lock-in profits during sideways and choppy markets.

Key points regarding Options:

  • Options are a right to purchase an equity or ETF at a particular price in the future, and they always have an expiration date.
  • Trading Options can help you create a profitable long-term portfolio by letting your profits run and cutting your losses short.
  • With Options, your profit potential can be greater – you can lock-in more profit. Plus, it can give you much more buffer on the downside. The market can drop, and you can still make money.
"Options can increase your odds of profitable trading. Options provide advantages NO other investment vehicle can offer!" Glenn Neely

Why trade Options?

You must take time to thoroughly understand this complex trading strategy. In doing so, you may find that Options can deliver the following 4 advantages, which Glenn Neely summarizes:

  1. It costs less to buy an Option (which represents 100 shares of stock) than to own 100 shares of stock.
  2. That lower cost provides leverage (a $90 strike Call on a $100 stock will cost about $1,000 to buy as opposed to $10,000 to acquire 100 shares) similar to Futures trading without the same risk exposure.
  3. When you create Option spreads (Shorting a Call against a Long Call), you collect premium from the passage of time! This is akin to collecting rent on an apartment building each month.
  4. Option spreads reduce the cost of your investment by 25% to 35% while simultaneously increasing the odds of a profitable outcome by 100% to 200%!

Glenn Neely's additional words of advice:

"A lot of traders try to make as much money as possible, and they forget about the risks they're taking. My goal – which should be the goal of every trader – is that return OF your capital is more important than return ON your capital. In other words, you always want to try to get your money back first and then everything else is, as they say in Louisiana, lagniappe. It's extra. Writing premium on Options increases your chances of getting your money back first. When you buy Options, they can provide the best of both worlds in the investment business: limited risk with unlimited potential." Glenn Neely

How can I become a better trader?

Take the NEELY RIVER Professional Trading Course personally taught by Glenn Neely. In the 12-week course, you'll learn how to improve your trading skills and get an introduction to Neely River Trading technologies. Along with understanding risk and better methods for managing profits and losses, you'll learn about capital preservation and trading for the long-term.

Class size ranges from 1-on-1 Private Training, Small-Group Training and Large-Group Training.

Courses are available throughout the year. Learn more and enroll today!

LEARN MORE

Hear Interviews with Glenn Neely

Key Strategy for Becoming a Better Trader

Glenn Neely discusses why it's critical for traders to master their trading psychology to be a more successful trader and investor.

Listen to this 24-minute interview

The "secret" ingredient to successful trading

How do you stay in the game over the long haul? For successful long-term trading, Glenn Neely reveals trading strategies to let profits run – and essential capital preservation strategies to cut losses short.

Listen to this 30-minute interview

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