Show notes: http://optionalpha.com/show74
Most newbie option investors start trading with small brokerage accounts. Whether by choice or necessity, the average investor opens up their account with approx $10,000 according to most brokers. And while this isn't a small amount of money by any means, it does limit your ability to trade more aggressive options strategies like straddles and strangles.
In today's podcast, I want to help you understand how you can still trade these more aggressive and profitable options strategies (synthetically with small tweaks) even if you've got a small account or are trading in and IRA. Specifically, I'll answer a bunch of common questions I get from new PRO members including; What if I can't trade straddles and strangles? How do I adjust the trading alerts to fit my portfolio? Should I scale position sizes down or up (# contracts)? What about spread width - go wider or more narrow? What if the commissions are eating too much into the profit after closing at 50%?
Sure, it might take a little more time to grow and mature an account but don't jump ahead or try to "game" the system. Eventually, the math and probabilities always play out the way they should, and you've got to learn how to build profitable strategies today if you plan on still being around in five or ten years from now.