Low risk (about $65) and a potential large gain in less than one month

A Possible Gain of 184% By the First day of Summer...READ MORE
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A Possible Gain of 184% By the First day of Summer

Traders should always consider risks as well as rewards when reviewing trading opportunities. This is important because there should always be new trading opportunities. That means if a trading opportunity carries a high amount of risk, a trader could pass and search for the next opportunity.

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In order to consider risks and rewards, a strategy should be developed to measure these factors. With some options strategies, both the level of maximum risk and level of maximum rewards can be determined to the penny when the trade is entered, allowing for a calculation more precise than is generally available when trading stocks.

We look at one of these strategies and, as we explain in our latest article, find that the strategy could be useful for short term traders interested in pursuing trading opportunities where the potential returns exceed the potential amount of risk, in dollar terms.

In the article, we use recent, live market data and show that the risk of a trade could be about $86 while the return could be as much as 184%. We show you all of the math we used to find those values so that you can plug in actual prices when you consider opportunities such as this.

We share the specific trade and details on the strategy in our latest free educational article that is available right here.

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Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
 

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