I’m sitting here this morning in the offices of SMB capital in downtown Manhattan,  making some notes  in anticipation of  a blitz  I”ll be doing this week, recording the majority of the videotapes that will form the core of our options training program.   It brought me back to my first days as an options trader and the intense excitement I felt about learning a new trading craft.  I can honestly say that options trading has  not only met, but exceeded my expectations as a career that I find exciting, constantly intellectually fascinating, ever changing and profitable.   We’ve invited interested   intraday equity  traders from SMB to sit in and participate in these sessions and I”m looking forward to sharing what I love to do with people who have a true passion for trading.

This got me to thinking,  what exactly is it that  caused me to fall in love with  income options trading in the first place?  And the answer has to do with the fact that there are SO many market scenarios in which you can make money and, once you become competent, only a few that can really cause you real problems.

If you are executing  market neutral strategies, which forms the core of many income options traders’ trading approach:

1. If the market goes nowhere you should make really good money.

2. If the market trends  mildly up you should make very good money.

3. If the market trends mildy  down, you should make very good money.

4. If the market whipsaws, you CAN make money but it’s tougher.

5. If the market trends really hard in either direction, it will be tough, but possible to make money.

6. If the market melts down, or “melts up”  you will probably lose money.

If you are trading a strategy based upon your directional bias, and this is the part that most people find really interesting:

1. If you are right you can make really good money.

2. If the market goes nowhere, you can make very good money.

3. If you picked the wrong direction, you can still make very good money, as long as you were not TOO wrong.

4. If you are REALLY wrong, you will struggle,  and probably lose money, but, if you are really good, or lucky, or both, you might eek out a small profit, breakeven, or just get dented a little bit.

I find that pretty cool.  And that’s why I love when 9:30 AM on Monday morning rolls around. How many people can say that about their full time careers? I consider myself a very lucky guy. And   I truly look forward to working with traders who share my passion for   options trading.

Seth Freudberg

Director,  SMB  Options Training Program