How Much Money Do You Need To Trade Options

Looking to start your options trading career and wondering how much money you need to trade options successfully

This Step-by-step- tutorial will show you that contrary to what so-called experts tell you, you can start day trading options with very little money.

How little? Read further.

How Much Do You Need to Trade Options

There is this misinformation out there from so-called gurus that one can only make money options trading by spending a great deal of money.

I have been trading and teaching beginners options trading since 2014.

I will provide you with the knowledge you need to start trading options without needing thousands of dollars.

How much do you need to invest in stocks vs options?

The great advantage of options trading over stocks trading is the fact that you do not need a lot of money to trade options.

Most US stocks – especially the high growth technologies stocks-have become too expensive for the average investor.

Recently, several of such stocks such as Apple(Ticker:AAPL) , Tesla (Ticker:TSLA) , Nvidia (Ticker:NVDA), Amazon(Ticker:AMZN) or Google have had to resort to stock split to make their shares more affordable.

That is very telling in this age of time where fractional shares buying is available to the general public.

How much money do you need to trade options - QQQ Top 8 stocks are expensive
QQQ Top 8 Stocks in 2022

How many shares of QQQ stocks Can you Buy with $100

A quick look at the above table reveals that the cheapest stocks in the tech ETF QQQ is Paypal (Ticker:PYPL) at $114 after losing almost 45% in 2022.

The second cheapest stock is AAPL with a price of $170 following a recent 4:1 split.

Consequently, it is very difficult to start investing in stocks without big money unless you are willing to try your luck with penny stocks.

On the other hand, you have multiple investment opportunities with options with a very small capital.

Cost of Options

Some traders often get confused with the options chain quotation.

American options by default are set such that one contract control 100 shares of the underlying stock.

Therefore, the option price you read on the option chain needs to be multiplied by 100 to get real money option cost.

Let me illustrate in the table below how to translate Option chain quotation into real money.

Option Chain Quotation ($)Real Money option price ($)
0.01$1
0.05$5
0.5$50
How To Translate Option Chain Price Quotation to real dollars amount

In case you may be wondering if $1 is a realistic amount to invest in options trading, let me answer with an Emphatic yes !

Here is the video of a recent trade I made on Target (Ticker:TGT) to prove it.

How much do you need to trade Options full time

In the above video, I showcased how I traded TGT options from $1 to $50.

That was not random at all.

I and other traders in my Discord room are doing this regularly.

So Can you when I teach you these very powerful strategies.

The table below showcases how I traded SPY options from 2 cents (quotation or $2 real money) to 20 cents in less than one hour.

How much money do you need to trade options - examples of $1 options investment in successful tradings Discord room
Successfully Trading Options from $1 (real money) in Discord Room

Ultimately, you can easily answer the question: How much to do you need to trade options full time.

A few hundred dollars can go a long way to get you started trading options successfully.

The key is to gather the necessary knowledge so that you can take your trading to the next level in 2022 and beyond.

How Much Do You Need To Trade Options On E*TRADE

The platform you choose the trade options with should never be a hinderance to your success.

Every so often I hear stories from traders about Robinhood or Webull not allowing them to take advantage of options trading opportunities such as on expiration day when options price get really cheap.

My simple recommendation is to consider an option trading platform such as E*TRADE where such restrictions do not exist.

How to Get Approval for Options Trading

As a beginner, you can create an options trading account on E*TRADE in just a few minutes.

You will be asked about your years of experience trading options.

Obviously, you may not have that many, but should you have me as your coach, you can leverage my many years of experience so that you account can be approved immediately.

The primary reason I like teaching beginners’ traders options trading from E*TRADE trading platform is the immediate availability of Paper Trading Account.

Another benefit is that you will be able to leverage the many E*TRADE video tutorials I created on my YouTube channel so that your learning can be even faster.

Below is an Example of one neat options Feature from E*TRADE:

Best Stock Options for Investors with Little Money

Over my multiple years trading options, I have acquired an in-depth understanding of option chains.

As such, I will be able to teach you proven strategies that do not require a lot of money to get you started.

Below is a proven for some of them.

Best options Strategies for Beginners with little money

The easiest options strategies for beginners with little money has a name very dear to me.

I call it “Friday No Wahala“.

This option trading strategy is very affordable for beginners and the beauty of it is that it is a simple overnight swing trade.

How much money do you need to trade options -trade turned $400 into $3700 on NFL weekly options
Discord Trader Turns $400 into $3700 on NFLX Options

Can You make a living day trading QQQ?

Hands down, Trading ETFS on Expiration days (Mondays, Wednesdays and Fridays) are the best options for investors with little money.

Why you may ask ?

Options are cheaper on expiration days.

I have mastered the art of trading QQQ for big profit on such days.

So will you.

Here is how I do it and will be teaching you ALL the nuances of this successful and powerful options strategy.

FINAL Thoughts on How Much You Need To Trade Options

I provided numerous examples of how much money you need to start trading options today.

Furthermore, the very strategies traders like yourself have been leveraging in my Discord Channel will be available to you immediately.

Let’s get your started with Options Trading Today.

How To Trade FOMC Meetings

How to trade FOMC Meetings

FOMC Meetings provide opportunities for day traders to make moeny.

You can leverage this full study of market volatility around FOMC Minutes.

My aim is to help day traders, swing traders alike to maximize their profits by properly learning how to trade FOMC Meetings.

My goal is to update you here with our FOMC Trades in our Discord Room going forward.

Here are the most upcoming dates. You can click on a date to go directly to that section.

FOR 2022: MARCH 15-16 || MAY 3-4 || JUNE 14-15 || JULY 26-27 || SEPTEMBER 20-21 || NOVEMBER1-2 || DECEMBER 15

How To Trade FOMC Meetings | What Is FOMC ?

I have been trading since 2014 and FOMC meetings by far provide the single one day highest volatility in the markets.

For options day traders, this is a great opportunity to make great profit in a very short time.

What Is FOMC Role?

FOMC stands for Federal Open Market Committee.

It was created in 1933 by the Federal reserve. The members determine the economic policies to ensure an efficient market.

The main role of the FOMC is to determine the interest rates and set the gauge for a measured inflation.

In recent years, these decisions have made the markets very volatile.

How Often Does the FOMC Meet

The FOMC set a yearly calendar for 7 to 8 meetings.

Here is the schedule for 2022 for example.

How To Trade the FOMC Meetings
FOMC Meetings Calendar for 2022

Some of the meetings (with an asterix next to the date) indicates that there will be economic projections data provided.

When Is The FOMC Meeting

The FOMC Meeting is a 2-day event starting on Tuesday that is concluded on Wednesday with the interest rate decision announcment.

Interest rates have been flat from 2018 until March 2022 when Fed Chair reveal the 25-basis point increase.

FOMC MEETING TRADING

At 2PM Eastern time on the second day of the FOMC Meeting (this is always on a wednesday), traders receive the FED decision on interest rate and others economic statistics.

The only thing that matters is the market reaction to that interest rate decsion.

But that is not all.

30 Minutes later, starting at 230PM EST, the Fed Chairman holds a Press Conference with a statement followed by questions.

Here is a chart of our favorite ETF QQQ on how it reacted exactly at that interest rate announcement at 2PM EST.

How To Trade FOMC Meetings -QQQ reactions to FOMC on March 16, 2022
QQQ Reaction To Interest Rate Decision on March 16, 2022

Should You Trade During the FOMC Press Conference

From the 15minute chart above, we can see that volatility jumps off at 2PM EST.

By my experience, the initial direction of the market is very often not the right one.

This is called a head-fake in day trading.

That is exactly what transpired on March 16 2022 with the big red candle and price posting a low of the day below the Bollinger Bands.

Beware of FOMC Head-Fake

Therefore, if you are a beginner trader and have not witness market reaction to FOMC before, you may be in for a big surprise.

Otherwise, you should absolutely take advantage of the violent reaction of the stock market to FOMC during the Press Conference.

Every single word the Fed Chairman pronounces is interpreted by the Algortithms with a buy or sell signal.

More Interest Rate Hikes to Come in 2022 and Beyond

HOW TO TRADE FOMC NEWS

With the FOMC decision on interest rates, certain stocks should fare better than others.

At least on paper, one would understand that if the cost of borrowing money goes higher, companies with good financial records ought to be benefit.

Banks And Financial Stocks

Who better to benefit from higher interest rates than the banks that actually provide loans to businesses ?

Here are the banks we like to trade when interest rate are higher:

  • Wells Fargo (Ticker : WFC) is a $50 stock that provides a great opportunities for options traders
  • Bank Of America (Ticker: BAC) is another cheap stock with a nice Option chain traders can benefit from
  • My third pre-feered bank to trade is JP Morgan -Chase (Ticker: JPM) even with its higher price in the $150’s.

Are Higher Interest Rates For Tech Stocks

Common knowledge has it that tech stocks should be at a disadvantage with higher interest rate.

However, given the growth and amount of capital these companies already have, there is no clear evidence to me that you cannot trade these.

Au contraire, with options trading, should tech companies become bearish, we can easily benefit with puts options.

My recommended Top Tech Companies to trade during FOMC Meetings:

  • NVIDIA (Ticker: NVDA) is by far the standard technology company with massive recent growth
  • Block previously known as Square (Ticker SQ) has fallen below $100 briefly before a recent melt up

BEST ETF TO TRADE AROUND FOMC MEETINGS IS QQQ

I have stated previously that the FOMC Announcements are always on wednesdays at 2PM EST.

This means that there is 2 hours left for same day expiration for ETFs such as VXX, IWM, SPY and more importantly QQQ.

QQQ Study After FOMC Meetings Since 2021

I studied the reaction of QQQ for each FOMC Meeting since in 2021.

The chart is included on the Table below with my commentaries.

January 17 2021 | QQQ FOMC Reaction starting at 2PM EST
March 172021 | QQQ FOMC Reaction starting at 2PM EST
April 28 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
JUNE 16 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
SEPTEMBER 22 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
NOVEMBER 3 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
How to Trade FOMCMeetings - December 3 2021 QQQ reactionDECEMBER 15 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
JANUARY 26 2022 | QQQ Reaction to FOMC Statement Starting at 2PM EST

QQQ head faked to the upside by up to $3 from 353 to 356.88.
Then it reversed during the Press conference by posting three consecutive 15′ red candles for a low of the Day at 341.

This means that you could have traded Puts from $356 to $341 in just an hour.
The Payout on those options was huge. Clearly over 10-Baggers.
MARCH 16 2022 | QQQ Reaction to FOMC Statement Starting at 2PM EST

QQQ head faked to the downside by up to $3 from 335 to 328.4
Then it reversed during the Press conference by posting four consecutive 15′ green candles for a high of the Day at 340.4.

This means that you could have traded Calls from $329 to $340 in just under 90 minutes.
The Payout on those Calls options was huge going from 3 cents to$1.27. Clearly over 10-Baggers.

New Trader Makes 600% Trading First FOMC In Our Discord Room

Here is how a brand new trader leverage our FOMC Study on QQQ to make 600% profit on his first trade.

How to Trade FOMC Meetings - 600% Profit on QQQ Options following MArch 16 2022 FOMCannouncment
Trader Makes 600% on QQQ Options Following FOMC Meeting Statement on March 16, 2022

FINAL THOUGHTS ON HOW TO TRADE FOMC MEETINGS

I summarized how to trade options around FOMC Minutes with QQQ ETF.

Every serious trader should consider taking advantage of this strategy to increase their account profits.

||Source: Federal Reserve Committee

Webull Instant Deposit – Easy Mistakes To Avoid

Are your trading account deposits taking too long to reach your Balance ?

Webull Instant Deposit is the ideal solution for you to get instant Trading capital to your account.

In this step-by-step tutorial on how to effectively use Webull Instant Deposit, you will master how to leverage all the benefits of Webull Instant Buying Power so that your money can start growing faster.

Does Webull Have Instant Deposit?

As a day trader or investor, how many times have you found yourself wishing you had cash available to take advantage of a great opportunity ?

Often, when such opportunities arise (to buy the dip in a stock or crypto), we do not have enough buying power to act.

Webull Instant Deposit feature is made for precisely such circumstances.

How Long Does Webull Deposit Take?

Per Webull own guidance, a deposit takes around 5 business days to settle.

This is a long time for most traders to wait in order to start putting your money to work for you.

Such processing time applies to ACH setup between your Webull trading account and your financial institution.

In my other broker accounts, I used same day wire to fund my account to minimize this waiting time.

How Long does Webull Take to Settle Funds

Webull Instant Deposit is meant to resolve the problem of how long Webull take to settle funds.

In order to alleviate that problem, here are the diverse options you can choose from.

You have the choice between ACH and wire transfers to get your funds into your Webull account.

The wire transfer for Webull looks a little bit too complex and I never explored it.

I know that most of the Webull traders prefer to use the ACH.

In case you need the wire Transfer Instruction, here is a view of what you need to set it up.

Webull Instant Deposit - Instructions for Webull wire Transfer
Webull Wire Transfer Instructions

In the US, same day wire transfer needs to be completed by 5PM Eastern time.

I typically domine in the morning before 8am pst, which is the opening time for my bank.

By 1045am pst, my funds are always available for me to trade.

Does Webull Do Instant Deposit

The Webull Instant Deposit works as if your money is available to you for trading right away even though the funds between Webull Clearing House and your bank have not settled yet.

Therefore, this means that you cannot take this money out yet until the full final settlement.

The other implication is that should your funds not clear, you may owe Webull money since they are basically extending you a short term loan.

When Do You Receive Webull Instant Deposit

Let’s try to summarize al the possibilities because the time you will receive your Webull Instant buying Power depends on when you initiate your deposit request.

Transfer Initial TimeWhen Will You Receive Webull Instant Buying Power
Before 930am EST on a Business Day Same Day During Business Hours
Business day between 930 and 4pm Instantaneous within a few Seconds
After 4pm on Business DayNext Business Day
Weekends or HolidaysNext Business Day
When Is Webull Instant Buying Power Available to your Account?

From the table above, it is easy to see that the best time to request the transfer is during market hours in order to credit your buying Power instantaneously withing a few second.

Instant Gratification does not get any better than that.

Instant Buying Power In Webull

The Instant Deposit ultimate goal is to get Instant Buying Power.

Now that we know that this is possible during regular business hours, let’s answer the question about how much Instant buying power you can expect.

Does Webull Have Instant Buying Power

Webull has Instant Buying Power if you initiate your transfer between 930am EST and 4PM EST on business days.

However, the amount of money or Buying Power you get is not always something you can predict.

In varies from account depending on your account type, cash balance, amount of money you are transferring , the current market value of your positions and your personal Webull credit.

That is a lot of parameters if you ask me.

For instance, does anyone know what is their Webull personal credit ?

I certainly do not know mine even though I have been using webull for several years now.

From what I can tell, it is an internal score Webull keeps for each trader based on your transactions history on their platform.

How To Use Instant Deposit on Webull

I can only share my experience on how much Instant Buying power I received the first time I funded my account.

I got $100 of Instant Buying Power for the first time and subsequently, anything I was depositing money into my Webull account, the Instant Buying Power was the amount of my transfer.

Hence this table below can help you predict how much Instant Buying Power you can expect assuming that you are in good standing with Webull.

How Much You DepositHow Much Instant Buying Power You Get?
Less than $1,000 Full Transfer Amount
More than $1,000Up to $1,000
Multiple pending DepositsAggregated amount of incoming funds determines Instant Buying Power
Webull Instant Buying Power Limit Amount as a function of Your Transfer amount

In Summary, Webull Instant deposit Limit Amount is likely going to be at least how much you deposit on that day and at most $1,000.

Therefore, this $1,000 can be considered as the Maxx Webull Instant Deposit limit amount regardless of how much money you are transferring that day into your Webull account.

Webull Instant Deposit Not Working? What To Do ?

In some rare cases, you may experience issues with your Webull Instant deposit.

Webull has done a great job with FAQs sections to help you alleviate such difficulties.

One of the most recurring issues on Webull instant Deposit is “Webull Failed to get bank Account.

Webull Failed to Get Bank Account

When you are linking your bank account to your Webull account, you need to ensure that the account is on your name.

The bank account cannot have a someone else name.

Should you find yourself in such predicament, here are the tutorials to help you solve this issue.

Webull Community | Learning

Inside the Webull app, you have access to a Community Section with a great deal of resources.

One such helpful resource is the Learning tab shown below where you can access Webull knowledge center at your own pace and convenience.

Webull Instant Deposit - How to Learn more on Instant deposit from the community Learning Center
Community Learning Center of Webull

From the Learning section of the Community center, scroll down to Webull APP and then click on Fundings Transfers and Instant Buying Power to reach the view below.

Webull Instant Deposit - How to resolve a failed Webull Deposit Tutorial
Webull Tutorial on Transfer helps with Failed Instant Deposit

Another great way to get your Instant Deposit is to follow my step-by-step video tutorial on YouTube.

Alternatives To Webull Instant Deposit | Webull Recurring Deposit

One of the best ways to ensure that you always have funds in your Webull trading account is to make regular deposits.

Recently, Webull just introduced a recurring deposit feature you can take advantage of going forward.

Webull Recurring Deposit

If like most investors you get your investing money from a regular job or other sources of income, you can setup a recurring deposits to your Webull trading account.

This is how easy it is to setup Webull recurrent deposits at preset dates that are convenient for you.

How To Setup your Webull Recurring Deposit Plan

  1. From your Account on Webull, select the Transfers Menu as shown below.

Webull Instant Deposit - How To Setup Webull recurring Deposit Plan
Webull Recurring Deposit Provides Instant Buying Power Regularly

2. Then, Click on recurrent Deposit to setup your recurring deposit schedule

You have four (4) plans you can select from to deposit money regularly on your Webull account.

The table below summarizes these available schedules.

Webull Recurrent Deposit SchedulesFrequencyMinimum AmountMaximum Amount ($)
DailyALLNoneTBD by your Bank | 5,000
WeeklyMonday through FridayNoneTBD by your Bank| 50lk
Bi-WeeklyMon | Tue |Wed| Thu | FriNoneTBD by your bank | 50k
Monthly1st through 28thNoneTBD per your Bank
Webull Recurrent Deposits Schedule

3. Make a Selection for the Schedule: Daily, Weekly Bi-weekly or Monthly

In the example below, I setup mine for weekly, then I chose Monday for an amount of $1,000.

This means that every week on Monday, I will get and Instant Deposit of $1,000 which Ican use to trade stocks, options or crypto.

Webull Instant Deposit -Setting Up Webull weekly Recurring Deposit for $1,000
My Webull Weekly Recurring Deposit for $1,000

This Webull recurrent Deposit is the feature to ensure that you get Instant deposits regularly and you always have available Buying Power on how account to take advantage of the great volatility in the markets.

Paper Trading on Webull

If you are a beginner trader and you just setup your account, a great alternative to Webull Instant deposit is to paper trade.

You can gain in experience whle paper trading without risking your money.

Then after you increase your confidence, you can go in with real money.

Alternatively, if you are an experienced trader, paper trading as an alternative to Webull Instant buying power can be a blessing as well.

How so ?

Simulate your trades while waiting for your Deposit

Because you can test your strategy on paper trading to see whether or not it is working while you are waiting for your funds.

This is a good simulation.

For instance, if you think that an option position provides a great entry, or you want to take advantage of a recent selloff in your favorite crypto,

Nothing is better than start that position in a paper account to test the waters.

FINAL THOUGTS ON WEBULL INSTANT DEPOSIT

Webull provides Instant Deposit so that you can have available funds to trade immediately.

Also, you can setup recurrent deposits so that you always have fresh buying power to help take advantage of the many trading opportunities in the stocks, options and crypto markets.

Source | Webull App