What car insurance teaches us about trading options

Car insurance is a contract between you and Geico.

It provides financial protection against certain events.

For a premium, Geico will pay you in the event your car is wrecked.

You can buy insurance for most valuable things, like a life, a home, a car, jewelry, and pets, to name a few.

Investors prefer to hold large positions in blue-chip stocks. These companies have a strong financial foundation and a long-standing reputation.

Investors consider blue-chip stocks to be investments with lower risk.

Like a life, a home, a car, jewelry, and pets, a large stock position has a lot of value.

But you can’t go to Geico to insure a blue-chip.

Instead you go to the options market and buy an out-of-the-money put.

And like your car insurance, the hope is that it expires worthless. There is no car wreck. The blue-chip stock does not have a big fall.

Most traders do not understand that the market created options as insurance for stocks.

This is why most options expire worthless.

Geico wouldn’t make billions if they were buying everyone new cars.

We insure valuable things and most of the time the premiums go to $0.

Same for options.

Here’s what car insurance teaches us about options trading.

Read this closely.

Want to know how I won 69 straight trades recently across a few months?

Or how I grew $2,000 into nearly $50,000 at its peak?

Or how my last 18 trade alerts were winners with:

1. An average trade size of $2,078

2. An average gain of 26% or $546 per trade

3. A total of $9,820 in profit in under a month

Want to know what Steve said yesterday?

You can read more reviews over on Trustpilot.

I know what you’re thinking — sounds too good to be true.

I want to point out that I cannot speak for my members’ performance, as results may not be typical and trading is HARD. And I cannot guarantee you will make money. But what I can guarantee is that I will work my BUTT OFF to teach you WHY I trade WHAT I trade.

Here’s the facts:

1. Most options expire worthless because like care insurance they are supposed to expire worthless

2. This is why buying options is so hard — but most people don’t understand how the time decay of options works

3. In the $2,000 Small Account Journey I teach traders to take the opposite side of the trade — selling defined risk option spreads which have high probability of winning

Most traders lose money and buying options is one of the big reasons why — after all, they are designed to go to $0.

When we think about the art of trading and truly growing as a trader, taking high probability trades boosts our confidence and gives us the motivation to work hard at trying to grow that $2,000 balance.

I have a master cheat sheet and really good instructional videos detailing exactly how I implement this strategy.

And for a small fee, I’ll not only provide that to you but I’ll also send my real-money trades to your phone as I make them in real-time.

Just like this.

I think now is the perfect time to join the $2,000 Small Account Journey and learn this strategy for the following reasons:

1. Interest rates are coming down

2. Markets tend to go up into elections

3. Santa rally follows the election

Click here to learn how I try to grow $2,000 balances.

Like thousands of others I think you’ll be pleasantly surprised how this works.

Eat, sleep, and trade!

Jason Bond

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