Wealth, Freedom & Options With Joshua Belanger

That was a question Ronnie wrote me over the weekend. He thinks that Gold ETF (GLD) will run higher into the end of the July. That's great, but who knows. The reason why I am telling you this is so you avoid this very costly mistake most make with trading options. Not only do sell offs in the market like this give people a good old slap in the face, but it also exposes the self-proclaimed experts in the space. I saw a proclaimed trading expert with several hundred people paying for his trade ideas recommend buying calls in a stock today on Twitter. I sighed and shook my head because I know he's leading investors down the wrong path. When you buy a call, you need to be right on time, direction and also volatility. That is the trade off with using options Vs. underlying. If you want to be successful with options, you must understand volatility and how it affects options pricing. With volatility higher across the market, option premiums are more expensive. If you've read my book or past emails