I think there is less risk. Especially with my strategy. Also you get 100x leverage. So I will give you a sample trade from today.
I bought Dec04 $600 Calls for $900 each at 9:55 am. At 1:25 I sold for $1820. So $1000 would be $2000. Now to make $1,000 in shares it would require ($1000/($25)) so I would need 40 shares (40*$550) = $22,000 risk.
Now I only buy calls or puts so my upside is always unlimited but downside is limited to the initial order.
Swing trading stocks is really hard because you have to sleep on $22,000 overnight. You can wake up with nothing in a black swan event. With options the most I will get hit on is $50-$100,000 which I have in the market at once. The rest is ready in the savings account in cash or etfs/TSLA stock.
I think options are the safest bet. Everyone starting out should look into the wheel strategy as it's basically free money for shareholders.
It is but not that much. It's limited to how far the stock falls. So if you buy a $500 contract when the share price is $95 you can still make $9500. If you had sold puts/calls then your profit is limited to the first sale you made.
I bought Dec04 $600 Calls for $900 each at 9:55 am. At 1:25 I sold for $1820. So $1000 would be $2000. Now to make $1,000 in shares it would require ($1000/($25)) so I would need 40 shares (40*$550) = $22,000 risk.
Now I only buy calls or puts so my upside is always unlimited but downside is limited to the initial order.
Swing trading stocks is really hard because you have to sleep on $22,000 overnight. You can wake up with nothing in a black swan event. With options the most I will get hit on is $50-$100,000 which I have in the market at once. The rest is ready in the savings account in cash or etfs/TSLA stock.
I think options are the safest bet. Everyone starting out should look into the wheel strategy as it's basically free money for shareholders.