Trading options is daunting, they are very confusing, there is a lot of math involved, so why bother? Because they are a great alternative way to be able to capture opportunities when the underlying instrument will not have much movement. That is what I am using to be short the bond market – March 125 TLT puts, as explained here.
There is a lot of leverage in options, but unlike futures, you aren’t risking more than you put in, assuming no margin on the options. They are a price leverage vs account leverage vehicle, just like the small stocks which I love to trade. I actually prefer the small stocks overall, as the % gains are just as powerful. But some people want to trade the “bigger stuff”, so options are a way to do that with more potential movement relative to the price.
I explain my way of trading options, and how I deal with the daunting math portion of options. I did not go in depth with all of the details, if you’re interested in this stuff, here’s some info and you may want to read that explanation first.
I did a second video to expand on this, I’m trying to keep these videos much shorter.