Options are simply a tool to MAGNIFY an expected return.


That's it. That's all they are.
The problem? Most people have zero clue which way a stock is actually headed.
So they take their coin-flip guess... and then magnify it.
Magnifying a guess just gets you to zero faster.
I only use options on the handful of plays where my conviction is sky high and the valuation is on my side.
A magnifying glass is useless if you're pointing it at the wrong thing.
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