Secret 19 CHEAP IS NOT ALWAYS CHEAP!

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Cheap options are easily found. Just look in your financial

newspaper or on the internet, and there are hundreds and thousands

of options that are priced under 1 ($100). However, to be

successful, you must buy options that are not only cheap, but

also bargains or underpriced options. The vast majority of cheap

options are overpriced or really worthless. The way to success is

to find cheap options that are also undervalued or bargains that

should be going for higher prices.

We will spend a lot of time in this book showing you how to

identify bargain options. When you can find such bargains, your

ability to predict what the underlying stock or futures will do is

not as important because the risk-reward picture will be so

attractive that even if you are right only 30% of the time, you will

be a winner. If you remember, my track record in the 1980’s

showed a 1500% return during two years, but only 20% of the

options paid off during those years.

Consequently, your objective should be to identify options

that are both cheap and underpriced or bargained priced.

Cheap options are easily found. Just look in your financial

newspaper or on the internet, and there are hundreds and thousands

of options that are priced under 1 ($100). However, to be

successful, you must buy options that are not only cheap, but

also bargains or underpriced options. The vast majority of cheap

options are overpriced or really worthless. The way to success is

to find cheap options that are also undervalued or bargains that

should be going for higher prices.

We will spend a lot of time in this book showing you how to

identify bargain options. When you can find such bargains, your

ability to predict what the underlying stock or futures will do is

not as important because the risk-reward picture will be so

attractive that even if you are right only 30% of the time, you will

be a winner. If you remember, my track record in the 1980’s

showed a 1500% return during two years, but only 20% of the

options paid off during those years.

Consequently, your objective should be to identify options

that are both cheap and underpriced or bargained priced.