Beware The Big Numbers

Last year, I transacted over $1 million in options trades.

Heck, this month I sold more than $100,000 worth of options contracts.

Here’s last week’s expired trades, totaling more than $20,000.

Sounds impressive, right?

Well, let’s take a deeper look at the math.

Of these transactions, my premium (the money I earned) was well under 1% per contract.

That $16,200 Abbvie sale? I earned $23.

And that Pfizer covered call valued over $6,000?

That netted me exactly $1.

All-in-all, five-figures options trading put $24 in my pocket.

I bring this up, because there are countless sales funnels and training courses promising to make you a five or six-figure trader or sales person.

Closing a $100,000 sales deal at 2% commission sends you home with $2,000. That’s great, but it’s nowhere near the Lamborghini or private jet money fake gurus promise. Additionally, reaching legendary trader status with 50% annualized returns would only leave you with a modest income if you’re managing $100,000 or less.