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 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 ($)|
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.
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.
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.