2 Common Misconceptions That Will Ruin Your Options Strategy

2 Common Misconceptions That Will Ruin Your Options Strategy by Alex Barrow, Macro Ops

Options.

They’re supposed to deliver you 1000% returns overnight, week after week right? That’s what a lot of these internet trading “gurus” will tell you anyway…

But the reality is far different.

Options are a zero-sum game. When one person wins, another loses.

The winners are few.

First you have the highly efficient market makers. These guys set market prices through their expertise in the Black-Scholes model used to derive an option’s price. They win in the long-term by controlling risk and collecting the difference in the bid-ask spreads. In exchange, they provide market liquidity.

The brokerage houses win big too. They skim their cut off every trade and come...