At some communities based around options trading such as Primetime Trading Group, members reportedly get a rare window into the world of successful options traders. Primetime Trading Group has always been doing things differently, and its reportedly earned them an 80% retention rate year over year.
Percivul and Primetime Trading Group seemingly shatter the conceptions of traditional day-trading win rates of 50% to 70%. The question is: How do they do it?
A Different Way Of Doing Things, Combined With Elite Analysts
Most retail options traders are net option buyers, meaning they purchase naked calls or puts in the hopes of a directional move. Despite years of doing this, many options traders neglect to ask a perhaps essential question: Who is on the other side of my play?
Careful consideration of this question may lead to an uncomfortable realization that most smart money is actually net option sellers. Thus, most retail traders — without knowing — actually go up against Wall Street’s biggest beasts when they purchase directional option plays. Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) is a famous option-selling Wall Street player that’s especially known for its $7.5 million gain in five minutes selling Coca-Cola Co. KO options.
Option sellers — like Buffet and Percivul — attempt to harness the power of statistics to make accurate bets about where the underlying stock’s price will not be within a certain time frame. The “not” in this sentence is important. Unlike option buyers, option sellers do not place bets on directional movement. They win when they select a boundary that a stock does not reach within a certain timeframe.
This distinction reportedly has a powerful result. Whereas day traders would be ecstatic to record a hit rate of 70%, most option sellers regularly report accuracy levels as high as 80% to 90%. With Primetime’s Percivul, this rate is 98%.
How It Works & Where To Get Started
Option sellers make money by collecting premiums, which are the prices buyers pay to purchase options contracts. An inherent downfall of “sell-only” options strategies is that you risk losing an unlimited amount of capital. To circumvent this, some option sellers use option spreads. Options spreads — like credit and debit spreads — place a cap on the amount of money you can lose when selling options while sometimes maintaining notoriously high accuracy rates.
Primetime Trading Group says it provides a direct gateway into the options selling world. The diamond club is the full suite service where Primetime lead trader Percivul invites you to trade with him live for the month, showing you how he takes about five to 10 trades a day, all while looking to keep under five losses per year.
Click here to check out Primetime.
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