One of the great mysteries in the investment world (at least to me, an admitted options nut) is why anyone would buy stock in a company they really like when they could dramatically increase their expected returns with a simple stock options strategy instead. Of course, buying options is a little more complicated and takes a little extra work, but if you could make two or three times (or more) on your investment, wouldn’t that little extra effort be more than worth it? Apparently not, since most people take the lazy way out and just buy the stock.
Today I will try to persuade you to give stock options a try. I will show you exactly what I am doing in one of my Terry’s Tips portfolios while trading one of my favorite stocks.
Why Calendar Spreads Are So Much Better Than Buying Stock
I like just about everything about Costco. I like to shop there. I buy wine by the case, paying far less than my local wine store (I am not alone – Costco is the largest retailer . . .