Make Money Trading Options Book Summary - Make Money Trading Options Book explained in key points
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Make Money Trading Options summary

Michael Sincere

Short-Term Strategies for Beginners

3.8 (288 ratings)
23 mins

Brief summary

Make Money Trading Options by Michael Sincere is a comprehensive guide that teaches the principles of options trading. It provides in-depth explanations of terminology, strategies and techniques for making profitable trades.

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    Make Money Trading Options
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    Trading stock options can be very lucrative.

    Imagine you’ve just retired after a fruitful career in teaching. Over the years, you’ve managed to stow away slivers of your monthly paycheck, depositing them into your retirement account. By now, your contributions have grown into a respectable nest egg of $150,000. 

    But here’s the thing: you have big plans for your retirement years. You want to travel the world, stay in fancy hotels, and maybe even pay off your mortgage. So how can you increase your income?

    Your first thought is stocks. Then you remember how your nephew goes on about the money he makes doing something called trading options. It seems like he always wins. Why not give it a shot?

    This is the key message: Trading stock options can be very lucrative. 

    Your nephew is right about one thing: you can make money trading options. But just like any investment, it comes with risks. To understand what exactly is at stake, let’s define the stuff options are made of. 

    Officially, a stock option is a type of agreement called an options contract. This gives you the right to buy – or sell – stock at a certain price in the future, without actually being obligated to buy that stock.

    You’re probably familiar with how stocks work. If you buy one share in Microsoft at $10, you own a tiny bit of Microsoft. If the price of Microsoft shares goes up to $15, and you sell your share, you’ll go home with a tidy profit of $5. 

    But if the share price falls to $1, and you sell, you’ll lose the difference: $9. If you had 100 shares to start out with, you’d need $1000 upfront. And if the market goes south, you’ll be out 900 bucks.

    When buying options, you’re not required to buy the actual underlying stock. And compared to stock trading, you don’t need as much money to start: one option contract controls 100 shares. The prices – or premiums – of this contract could be as low as a few dollars.

    Let’s say you buy an option contract for Microsoft valued at $10 per share. If the share price reaches $15, you then have the right to purchase 100 shares of Microsoft at the earlier price – the strike price – and sell them for the higher, market price. So instead of a $5 profit, you’ll be sitting on $500. If the price goes down to $1, you’ll only lose what you paid for the premium.

    This does sound great – a get-rich-quick scheme that really works! What could possibly go wrong?

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    Key ideas in Make Money Trading Options

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    What is Make Money Trading Options about?

    Make Money Trading Options: Short-Term Strategies for Beginners (2021) guides readers through the common pitfalls of trading stock options and arms beginner day traders with some easy-to-use tools to start trading call and put options on the stock market today. At its heart is the Test Trading Strategy, which uses virtual trading tools to single out profitable stocks each day.

    Make Money Trading Options Review

    Make Money Trading Options by Michael Sincere (2018) is a comprehensive guide for anyone interested in profiting from options trading. Here's why this book is definitely worth reading:

    • With its clear explanations and step-by-step approach, it makes options trading accessible and practical for beginners.
    • The book explores various strategies that can enhance profit potential and reduce risk, providing valuable insights for experienced traders as well.
    • Through real-life examples and case studies, it brings the concepts to life, making the book engaging and actionable.

    Best quote from Make Money Trading Options

    Id rather probe with paper money than risk losing real money.

    —Michael Sincere
    example alt text

    Who should read Make Money Trading Options?

    • Aspiring stock traders looking to increase their wealth
    • Investment newcomers curious about options
    • Economics enthusiasts

    About the Author

    Michael Sincere is a best-selling author and columnist for MarketWatch and the Wall Street Journal. Sincere has written several books on investing, in particular this book’s precursor, Understanding Options (2014), which is now in its second edition. He has also contributed hundreds of articles for other brokerage firms.

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    Make Money Trading Options FAQs 

    What is the main message of Make Money Trading Options?

    The main message of Make Money Trading Options is how to profit from options trading strategies.

    How long does it take to read Make Money Trading Options?

    The reading time for Make Money Trading Options varies, but it typically takes a few hours. The Blinkist summary can be read in just 15 minutes.

    Is Make Money Trading Options a good book? Is it worth reading?

    Make Money Trading Options is worth reading for anyone interested in learning about options trading. It provides valuable insights and tips for making profitable trades.

    Who is the author of Make Money Trading Options?

    The author of Make Money Trading Options is Michael Sincere.

    What to read after Make Money Trading Options?

    If you're wondering what to read next after Make Money Trading Options, here are some recommendations we suggest:
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    • The New Trading for a Living by Dr. Alexander Elder
    • How to Make Money in Stocks by William J. O'Neil
    • The Man Who Solved the Market by Gregory Zuckerman
    • Nothing But Net by Mark Mahaney
    • The FALCON Method by David Solyomi
    • What I Learned Losing a Million Dollars by Jim Paul
    • 12 Rules For Life by Jordan B. Peterson