Frequently Asked Questions
“Clarity precedes success.” – Robin Sharma
Welcome to Options Trading!
Renting Stock Power and Using Leverage
When you trade options, you’re essentially doing two powerful things:
1. Renting the Stock: Imagine if you could enjoy the benefits of owning a car by only paying a fraction of its total price for as long as you need it, instead of buying it outright. Options allow you to do something similar with stocks. When you buy an option, you’re not buying the stock itself. Instead, you’re paying for the right to buy (or sell) the stock at a certain price if you choose to. This right lasts until the option’s expiry date. This is like paying rent for the stock—you get some of the benefits of owning the stock, like the ability to buy or sell it at favorable prices, without having to invest the full price of the stock itself.
2. Using Leverage: By renting the stock with a small amount of money (the price of the option), you can control a much larger amount of the stock than you could if you had to buy it outright. This is called leverage. Leverage amplifies your potential gains from changes in the stock’s price. However, just like using a lever to lift a heavy object, it can also amplify the risk, because it magnifies the effect of price changes on your investment.
Curious about Stock Options but not sure where to start? Check out WBI’s Stock Options 101 —it’s all the essential vocabulary and basic concepts you need to make sense of the Options markets, and remove any mysterious fears. No sign-up required, just a handy introduction guide.
📈 Quick Read: Stock Options 101
Todd Rampe is the founder of the Wealth Builders Institute in Las Vegas, NV. He trades his own account using the method he teaches both new and experienced traders. His proprietary software, Triple Sync Logic, helps identify market reversals, which can be a strategic time to enter a trade.
Becoming proficient in trading requires a methodical approach. The Triple Sync Logic software and formula provide clear rules for engagement, exit strategies, and money management. This system aims to simplify trading by providing clear indicators. However, individual results may vary and trading involves risks.
Our program focuses on trading stock options by trying to identify market reversals, a technique not commonly mastered. This method aims to help traders understand market movements, though trading carries inherent risks and requires confidence and practice.
Many students start with around $5,000, but it is possible to begin with $3,000. Todd advises starting with small positions. Trading involves risks, and it is essential to invest only what you can afford to lose.
Results cannot be guaranteed. Trading involves risk, and returns vary based on market conditions and individual performance. The program provides strategies to manage risk, but there are no assurances of profit.
Trading might not be suitable for everyone due to its risks. The program is designed to help build confidence and reduce emotional trading. However, it is essential to understand and be comfortable with the risks involved.
This program may not be suitable for those who cannot be in front of their computer during market hours. Success in trading often requires dedication and time to learn and apply the strategies taught.
Our program is designed to teach beginners, but trading carries risks. Past performance is not indicative of future results, and individual success varies.
All active-duty U.S. military personnel, U.S. military veterans and first responders will receive commission-free trading for stocks, ETFs and options, reduced-fee commissions for futures, a waiver of all inactivity fees, free premium trading tools and free non-professional real-time data, for eligible participants, with this platform.
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