Do I have to trade options?

If you wish to maximize your gains so you can rake in a consistent series of triple-digit winners, then yes, you have to trade options. Options provide incredible leverage. For many of the trades in the Precision Profits service, we are looking for only a small move in the underlying stock — between 5% and 15% — but that small move translates into gains of 90%, 100% and even 200% when we use options.

What’s more, options allow you to devote a smaller portion of your overall portfolio to a position. If you wanted to buy 100 shares of Apple, it would cost you upward of $10,000. On the other hand, one call option contract with three months of time at roughly the same price level as the stock would cost you less than $1,000.

In other words, the option contract gives you control of 100 shares of Apple and allows you to participate in the movement of the stock. But you’re now risking only a fraction of your portfolio on one position. You can now better protect and diversify your investments than if you’d devoted $10,000 to one stock.