To make money with options you need to have good option chains lets look at JPMorgan Chase & Co. (JPM)

January 26, 2011 / Ken Bailey

There seems to be unlimited ways to make money with options. With the right options trading knowledge you’ll understand that options can be put together in many ways.

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You can make money in any direction with options. In this market that is VERY important. But to make money with options you need to have good option chains.

Some chains will support many different strategies and some chains might only support one. When you can put a great options chain with a best of breed stock you have a great combination. For me that is JPM. JPM has chains for the next three months in a row. It has leaps. The spreads are reasonable and the credits are quite profitable. One of the first things I look at is front money ATM covered calls. JPM often pays 3%. 3%/month is great money from a best of breed. You can often get 1% with an ITM covered call at support. The chains also allow for easy adjustment. If your covered call goes ITM you can roll for a profit pretty easily. JPM was trading in a nice channel. It might be making a new one. With great chains, best of breed and a nice chart JPM is a great stock with which to make money safely. It takes some patience to wait for the right setup for the right option trading strategies but you’ll be well rewarded for your efforts. Don’t tell your friends you’re making 3+%/a month from JPM because they’ll think you’re crazy. Just tell them you are profiting from your hard work.

Kenneth Bailey

OptionsANIMAL Instructor