Today was the day the iPhone 7 was unveiled to the

world.

I admit, I watched most of on my iPhone 6s Plus

using Google's free internet at Starbucks during

my mid-day break.

While I walked upstairs to sit outside and drink

my coffee while I streamed it, I noticed a dozen

people watching the event on their devices as

well.

There's a lot of excitement about these events

with Apple.

These are binary events, and when there's

uncertainty, there's opportunity.

Looking at the options that expire this Friday,

the market was pricing a $2.30 range with prices

closing at $107.70, yesterday.

Because the market knew this event was coming, the

shorter dated options had more priced in risk.

This is the #1 reason why so many lose money

trading options.

Some may buy a call because they think the iPhone

7 is going to blow everyone's mind, while others

may think Apple's run is over and purchase a put.

Either way, they are choosing a direction and

buying option premium before this event which

implied volatility is elevated.

Long-term success with options isn't based on

picking price direction.

With stock, it's a 50/50 coin flip.

With buying options the way most do, the

probabilities will decrease against you.

With prices closing at $107.70 in Apple last

night, selling to open the 108/107 straddle,

(technically a strangle because they're no half

point strike options) would have brought in around

$2.60 per transaction.

The probabilities of this trade working were

greater than picking a direction.

With a standard margin account, it would have used

around $2,000.00 of the buying power.

After the dust was settled today, that 108/107

strangle closed at $2.10, which is a 20% ROI

overnight.

During the session, though, this position traded

lower meaning it could be bought to close for more

of profit.

Tip: Because this was a strangle, this does carry

more risk, and it's more advantageous to manage

these types of positions at 25%.

That means those who took the other side of buying

options, most likely lost.

Success with trading options works just like this

over and over again.

If you're still struggling to learn how to trade

options and want to learn the right education and

systems to become an independent money-making

machine, then head over to our courses page and

get started.

http://www.OptionSIZZLE.com/Courses

To your wealth, freedom and options!

Joshua Belanger