Where Have All The Stock Options Traders Gone?
Stock option trading was hot until the Tech Wreck of 2000. Then the stock options traders disappeared. You didnít hear much about it anymore. (Losing traders tend to keep to themselves.) Thereís a new breed of options tradersÖ
ATLANTA, GA, Aug 01, 2005 -- Before the crash of 2000 anyone could throw a dart at a tech stock or option and make money. That once in a lifetime opportunity is now a fading memory. Many pre-crash traders rode the NASDAQ up and then right back down. Some are still waiting for the bounce that will never happen.
What are these former tech traders doing now? Those that are still in the game have redirected their focus. The new millennium ushered in a new breed of trader that is focused on minimizing losses. Thatís right Ė a complete attitude reversal. One thatís much more humble. ďRisk-adverseĒ is the new buzzword.
One little known strategy used by conservative stock options traders is whatís known in the trade as credit spreads. Credit spreads have less risk than owning the stock outright. And less risk than most other option strategies. The other side of that coin is that they have a cap on potential profit. Typically in the range of 2 to 9% a month. But hey, thatís OK. Thatís much better than 0.1% a month in a savings account.
Many pre-crash traders now have regular jobs, once again. When do they carve out time to trade? Luckily this type of trading doesnít require any more than a few minutes per day. Add to that an hour or so once a month to scan option picks and enter trades and another hour at monthly option expiration. Most of this can be done outside of regular market hours so it doesnít interfere with the job.
New training courses have popped up that specialize in teaching this one strategy Ė to keep it simple for risk-adverse time-limited traders. One example is Stock Options Course in Atlanta. They have a weekend immersion course backed up with a year of support designed just for the new millennium trader. www.StockOptionsCourse.com
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